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Fairfield, California: Rising Home Values and Ownership Amidst Strategic Location
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
Fairfield, California, located in Solano County, is a vibrant city known for its strategic position between San Francisco and Sacramento. With a population of 119,333 in 2022, Fairfield has experienced steady growth over the years. The city has seen fluctuations in homeownership rates and significant increases in both average home prices and average rent prices since 2010.
The relationship between homeownership rates and average home prices in Fairfield reveals interesting trends. In 2013, the homeownership rate was 51%, with an average home price of $254,899. As average home prices rose to $382,022 by 2016, the homeownership rate increased to 55%. This upward trend continued, reaching a peak of 65% homeownership in 2022, corresponding with an average home price of $629,919. This suggests that despite rising prices, Fairfield residents have been increasingly able to purchase homes.
Federal interest rates have played a role in homeownership trends in Fairfield. From 2013 to 2016, when interest rates remained low (0.11% to 0.40%), homeownership rates increased from 51% to 55%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 59%. Interestingly, despite a sharp increase in interest rates to 1.68% in 2022, homeownership in Fairfield reached its highest point at 65%, indicating other factors may have influenced this trend.
Renter percentages and average rent prices in Fairfield have shown their own distinct patterns. In 2013, 49% of residents were renters, with an average rent of $1,274. As the population grew from 109,302 in 2013 to 119,333 in 2022, the percentage of renters decreased to 35%, while average rent prices increased significantly to $2,115. This suggests that despite rising rent costs, more residents were transitioning to homeownership, possibly due to the city's economic growth and housing market dynamics.
In 2023 and 2024, Fairfield's housing market showed signs of stabilization. The average home price in 2023 was $605,858, a slight decrease from 2022, while 2024 saw a modest increase to $620,959. Federal interest rates remained high during this period, at 5.02% in 2023 and 5.33% in 2024, which may have influenced the housing market's pace.
Looking ahead, predictive models suggest that Fairfield's average home prices may continue to rise moderately over the next five years, potentially reaching around $675,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $2,500 by 2029. These projections assume continued population growth and economic stability in the region.
In summary, Fairfield has demonstrated resilience in its housing market, with increasing homeownership rates despite rising home prices. The city has managed to maintain a balance between ownership and rental markets, even as both sectors experienced significant price increases. The relationship between federal interest rates and homeownership has been complex, with local factors seemingly outweighing national trends in recent years. As Fairfield continues to grow, it will be crucial to monitor these housing trends and their impact on the city's demographics and economy.
