The relationship between federal interest rates and homeownership rates in Castle shows some correlation. In 2013, when interest rates were at a low 0.11%, homeownership was at 27%. As interest rates increased to 1.68% in 2022, homeownership fell to 20%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.

The percentage of renters in Castle has shown an overall upward trend, increasing from 70% in 2013 to 80% in 2022. This rise in renter occupancy has been accompanied by a significant increase in average rent prices. In 2013, the average rent was $876, but by 2022, it had risen to $1,652, an 89% increase. The growing renter population, coupled with rising rent prices, suggests a strong demand for rental properties in the area.

Recent data shows that average home prices in Castle continued to rise in 2023 and 2024, reaching $591,846 and $636,779 respectively. This represents a further 10% increase from 2022 to 2024. Federal interest rates also saw a significant jump, rising from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the neighborhood.

Predictive models forecast that average home prices in Castle will continue their upward trajectory, potentially reaching around $750,000 by 2029. Average rent prices are also expected to rise, potentially surpassing $2,000 per month within the same timeframe. These projections are based on historical trends and current market conditions.

In conclusion, Castle has experienced a notable decrease in homeownership rates alongside substantial increases in both average home prices and rent costs. The inverse relationship between rising housing costs and declining homeownership rates highlights the changing dynamics of housing affordability in the neighborhood. As Castle continues to evolve, these trends will likely shape the future demographics and housing market of this San Diego community.