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Granger, National City: Home Values Triple as Ownership Rises
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Granger, a neighborhood in National City, California, has experienced significant changes in homeownership and housing prices over the past decade. From 2013 to 2022, homeownership rates in Granger increased from 49% to 54%, while average home prices more than tripled. This unique combination of rising ownership rates and rapidly appreciating home values presents an interesting case study in urban development and housing market dynamics.
The relationship between homeownership percentages and average home prices in Granger reveals a notable trend. As average home prices rose from $204,816 in 2010 to $630,906 in 2022, homeownership rates increased from 49% in 2013 to 54% in 2022. This suggests that despite rising prices, more residents were able to purchase homes. The most significant jump in homeownership occurred between 2015 and 2016, rising from 49% to 53%, coinciding with a period when average home prices increased from $327,989 to $367,847.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2010 to 2015 saw historically low interest rates, hovering around 0.1% to 0.18%. This coincided with a gradual increase in homeownership rates, likely due to more affordable financing options. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates stabilized around 53-54%, suggesting that the increased cost of borrowing may have tempered further growth in homeownership.
Renter percentages in Granger have shown an inverse relationship to homeownership rates, decreasing from 51% in 2013 to 46% in 2022. Despite this decline, average rent prices have steadily increased from $1,141 in 2013 to $1,534 in 2022, a 34.4% increase over nine years. This trend suggests that while fewer residents are renting, those who do are paying significantly more. The population fluctuations, peaking at 6,390 in 2016 and decreasing to 4,641 in 2022, may have contributed to the rental market dynamics, potentially creating a more competitive environment for available rental properties.
Looking at the most recent data, average home prices in Granger continued to rise, reaching $645,928 in 2023 and $685,183 in 2024. This represents a 2.4% increase from 2022 to 2023 and a further 6.1% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Granger will continue to rise, potentially reaching around $800,000 by 2029. This projection is based on the historical growth rate and current market conditions. For average rent prices, the forecast suggests a continued upward trend, potentially reaching approximately $1,800 per month by 2029. These predictions assume a continuation of current economic conditions and housing market trends.
In summary, Granger has experienced a significant increase in both homeownership rates and average home prices over the past decade. Despite rising property values, the neighborhood has maintained a relatively stable balance between owners and renters. The most critical discoveries include the resilience of homeownership rates in the face of rising prices, the steady increase in average rent despite a decreasing renter population, and the potential impact of rising interest rates on future housing market dynamics. As we look ahead, the neighborhood is likely to continue seeing appreciation in both home values and rental prices, potentially affecting affordability and demographic composition in the coming years.
