The rental market in El Dorado Hills has remained relatively small but stable, with the percentage of renters hovering around 12-13% from 2013 to 2022. Average rent prices showed considerable fluctuation, increasing from $1,879 in 2013 to $2,255 in 2019, a 20% rise. However, there was a slight decline in average rent prices from 2020 to 2022, with the 2022 figure standing at $2,063. This trend suggests that the rental market, while a minor component of El Dorado Hills' housing landscape, has experienced its own dynamics separate from the ownership market.

In 2023, the average home price in El Dorado Hills decreased slightly to $915,497, a 4.4% decline from the previous year, as federal interest rates rose sharply to 5.02%. Moving into 2024, there was a modest recovery in average home prices, reaching $933,695, while interest rates further increased to 5.33%. These figures indicate a resilient housing market in El Dorado Hills, capable of maintaining relatively high prices even in the face of rising interest rates.

Based on historical trends and current market conditions, average home prices in El Dorado Hills may continue to show moderate growth over the next five years. However, the rate of increase is likely to be more tempered compared to the rapid appreciation seen in the 2013-2022 period. Average rent prices may stabilize or see slight increases, aligning with the overall housing market trends in the area.

In summary, El Dorado Hills has demonstrated a remarkably stable and high rate of homeownership over the past decade, coupled with significant appreciation in average home values. The community has weathered changes in interest rates and maintained its attractiveness to homeowners. While the rental market remains a small portion of the housing landscape, it has shown its own distinct patterns of growth and adjustment. As El Dorado Hills continues to evolve, its housing market appears poised for continued stability with potential for moderate growth in both the ownership and rental sectors.