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Durham's Zip Code 95938: Rising Home Values and Ownership in Rural California
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
Durham, located in zip code 95938 in California, has experienced notable shifts in homeownership rates and housing prices over the past decade. This rural community has seen a general trend towards increased homeownership, coupled with significant fluctuations in average home and rent prices.
The homeownership rate in Durham has shown a steady increase from 64% in 2019 to 77% in 2022, indicating a strong preference for home ownership in recent years. This trend coincides with a substantial rise in average home prices, which grew from $504,514 in 2019 to $653,273 in 2022, representing a 29.5% increase over just three years. The relationship between homeownership rates and average home prices suggests that despite rising costs, residents have been increasingly motivated to purchase homes.
Federal interest rates have played a significant role in shaping homeownership trends in Durham. The period from 2019 to 2021 saw historically low interest rates, dropping from 2.16% to 0.08%. This favorable lending environment likely contributed to the surge in homeownership, as lower rates made mortgages more affordable for potential buyers. The sharp increase in homeownership from 68% in 2020 to 73% in 2021 aligns with this period of exceptionally low interest rates.
Conversely, the percentage of renters in Durham has decreased from 36% in 2019 to 23% in 2022. Despite this decline in the renter population, average rent prices have shown an upward trend, increasing from $1,370 in 2019 to $1,491 in 2022, a 8.8% rise. This inverse relationship between renter percentages and rent prices could be attributed to a limited supply of rental properties in the area, driving up costs even as demand potentially decreases.
In 2023 and 2024, Durham experienced a shift in housing market dynamics. The average home price in 2023 was $621,671, showing a 4.8% decrease from 2022. This trend continued into 2024, with average home prices further declining to $613,632. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of home prices by making borrowing more expensive for potential homebuyers.
Looking ahead, predictive models suggest that average home prices in Durham may stabilize or experience modest growth over the next five years, assuming interest rates remain relatively high. Rent prices are expected to continue their upward trajectory, albeit at a slower pace, potentially reaching around $1,600-$1,700 by 2029. However, these projections could be influenced by broader economic factors and local market conditions.
In summary, Durham has witnessed a strong trend towards homeownership, with average home prices showing substantial growth until 2022, followed by a recent cooling period. The rental market has seen a decrease in the percentage of renters but an increase in average rent prices. The interplay between federal interest rates, homeownership rates, and housing prices underscores the complex dynamics shaping the local real estate market in this California community.
