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Danville's Soaring Home Values: A Decade of Stability and Growth in California's Contra Costa County
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
Danville, California, an affluent town in the San Ramon Valley, is known for its picturesque landscapes and high quality of life. This analysis examines the trends in homeownership, average home prices, and average rent prices in Danville from 2010 to 2024. Throughout this period, Danville has maintained a consistently high rate of homeownership while experiencing significant growth in both average home prices and average rent prices.
The homeownership rate in Danville has remained relatively stable, hovering around 82-83% throughout most of the observed period. In 2022, the homeownership rate reached 85%, indicating a slight increase in recent years. This high rate of homeownership has persisted despite substantial increases in average home prices. In 2010, the average home price in Danville was $755,528. By 2022, this figure had increased to $2,045,515, representing a 170% increase over 12 years. This trend suggests that Danville's residents have maintained their ability to purchase homes despite rising prices, potentially due to high incomes in the area.
Federal interest rates have influenced homeownership trends in Danville. From 2010 to 2016, interest rates remained exceptionally low, ranging from 0.09% to 0.40%. During this period, homeownership rates in Danville remained stable at around 82-83%. As interest rates began to rise from 2017 to 2019, reaching 2.16% in 2019, homeownership rates in Danville actually increased slightly to 83%. This suggests that Danville's homebuyers were relatively insulated from the effects of rising interest rates, possibly due to strong local economic conditions.
Renter percentages in Danville have remained consistently low, ranging from 15% to 18% throughout the observed period. Despite the low percentage of renters, average rent prices have seen significant increases. In 2013, the average rent in Danville was $1,976. By 2022, this figure had risen to $2,750, representing a 39% increase over nine years. This increase in average rent prices, coupled with the low renter percentage, suggests a competitive rental market in Danville, likely driven by the town's desirability and limited rental inventory.
In 2023 and 2024, Danville's real estate market showed signs of stabilization after years of rapid growth. The average home price in 2023 was $1,917,666, representing a slight decrease from the 2022 peak. However, in 2024, the average home price rebounded to $1,970,915, indicating continued strength in the market. These figures coincide with higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, which may have contributed to the slight moderation in home prices.
Looking ahead, based on historical trends and current market conditions, we can project the following 5-year trends for Danville: Average home prices are likely to continue their upward trajectory, albeit at a more moderate pace. We can expect prices to reach approximately $2,200,000 to $2,400,000 by 2029. Average rent prices are also expected to increase, potentially reaching $3,200 to $3,500 per month by 2029.
In summary, Danville's real estate market is characterized by high homeownership rates, rapidly appreciating home values, and rising rent prices. The town's ability to maintain high homeownership rates despite significant price increases speaks to its economic strength and desirability as a residential area. While recent data suggests a slight moderation in price growth, Danville's real estate market remains robust and is poised for continued appreciation in both home values and rent prices in the coming years.
