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Cortez Hill: Rising Home Values and Shifting Ownership in a Dynamic San Diego Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Cortez Hill, a vibrant neighborhood in San Diego, California, has experienced significant changes in its housing market over the past decade. This urban area, known for its mix of residential and commercial properties, has seen notable shifts in homeownership rates, average home prices, and average rent prices. The homeownership rate in Cortez Hill has shown a general downward trend. In 2013, 28% of residents owned their homes, but by 2022, this figure had decreased to 21%. This decline in homeownership coincided with a substantial increase in average home prices. The average home price rose from $363,645 in 2013 to $613,190 in 2022, representing a 68.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in Cortez Hill shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates decreased from 28% to 18%. This trend contradicts the typical expectation that lower interest rates encourage homeownership. However, the rapid increase in home prices during this period likely offset the potential benefits of low interest rates for many potential buyers.
Renter occupancy in Cortez Hill has shown an inverse relationship to homeownership, increasing from 72% in 2013 to 79% in 2022. This rise in renter occupancy has been accompanied by an increase in average rent prices. The average rent rose from $1,363 in 2013 to $1,573 in 2022, a 15.4% increase. The population of Cortez Hill also grew during this period, from 2,220 in 2013 to 3,018 in 2022, potentially contributing to the increased demand for rental properties and the subsequent rise in rent prices.
More recent data shows that the average home price in Cortez Hill continued to rise, reaching $630,159 in 2023 and $653,274 in 2024. This represents a 6.5% increase from 2022 to 2024. This price growth occurred despite a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. This suggests that other factors, such as local market conditions and housing demand, may be outweighing the potential dampening effect of higher interest rates on home prices in this neighborhood.
Predictive models forecast that average home prices in Cortez Hill will continue their upward trajectory, potentially reaching around $750,000 by 2029. Average rent prices are also likely to increase, albeit at a slower rate, potentially reaching approximately $1,800 per month in the same timeframe.
In summary, Cortez Hill has experienced a significant shift towards a renter-dominated market over the past decade, with homeownership rates declining and average home prices rising substantially. Despite fluctuations in federal interest rates, the neighborhood's housing market has shown resilience, with continued price growth even in the face of recent interest rate hikes. The combination of population growth, increasing property values, and a trend towards renting suggests that Cortez Hill will likely remain a dynamic and in-demand residential area in the coming years.
