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Dixon Housing Market: Agricultural Heritage Meets Rising Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Dixon, California, a growing community in Solano County, has experienced significant changes in its housing market over the past decade. With a population of 22,085 as of 2022, this city known for its agricultural heritage and small-town charm has seen notable increases in both average home prices and rent prices, while homeownership rates have slightly declined.
From 2013 to 2022, Dixon's homeownership rate decreased from 63% to 60%, while average home prices rose dramatically from $274,540 to $607,154, representing a 121% increase. This inverse relationship suggests that rising property values may have made homeownership less attainable for some residents. During the same period, the renter percentage increased from 37% to 40%, with average rent prices rising by 7.2% from $1,369 to $1,467.
Federal interest rates have played a significant role in shaping homeownership trends in Dixon. From 2013 to 2016, when interest rates remained below 0.5%, homeownership rates increased from 63% to 67%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates gradually declined to 60%, indicating that higher borrowing costs may have deterred potential buyers.
Recent data shows that average home prices in Dixon reached $584,056 in 2023 and further increased to $596,569 in 2024, representing a modest growth of 2.1%. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the city.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Dixon will continue to rise, albeit at a more moderate pace compared to the rapid growth seen in the past decade. Average home prices could potentially reach around $650,000 to $700,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,600 to $1,700 per month in the same timeframe. These projections assume steady economic growth and continued population increase in the area.
In summary, Dixon has experienced a gradual shift towards renting, with homeownership rates declining slightly as average home prices have more than doubled over the past decade. The interplay between federal interest rates, housing affordability, and population growth has shaped these trends. Moving forward, the city is likely to see continued growth in both home prices and rent prices, although the rate of increase may moderate compared to recent years. These trends highlight the evolving housing market dynamics in Dixon and the ongoing challenges of balancing affordability with property value appreciation.
