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Home Values and Ownership in Foothill Square: A Decade of Transformation
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Foothill Square, a neighborhood in Oakland, California, has experienced significant shifts in its housing market over the past decade. This analysis examines the interplay between homeownership rates, average home prices, and average rent prices, revealing interesting trends and potential future developments.
The neighborhood has seen a remarkable increase in homeownership, with the percentage of owner-occupied homes rising from 39% in 2013 to 71% in 2022. This trend coincides with a substantial rise in average home prices, which grew from $216,043 in 2013 to $685,945 in 2022, representing a 217% increase over nine years.
The relationship between federal interest rates and homeownership rates in Foothill Square presents an intriguing case. Despite historically low interest rates between 2010 and 2021 (ranging from 0.08% to 0.4%), homeownership rates initially remained relatively stable. However, a significant surge in homeownership occurred from 2020 to 2022, with rates jumping from 60% to 71%, even as interest rates began to rise. This suggests that other factors, such as local economic conditions or housing policies, may have played a more substantial role in driving homeownership in this neighborhood than interest rates alone.
As homeownership increased, the percentage of renters in Foothill Square decreased from 61% in 2013 to 29% in 2022. Interestingly, average rent prices showed an overall upward trend during this period, rising from $1,282 in 2013 to $1,475 in 2022, a 15% increase. This trend suggests that despite the decreasing proportion of renters, demand for rental properties remained strong, possibly due to factors such as population growth or changes in the local job market.
In 2023 and 2024, Foothill Square's housing market showed signs of cooling. Average home prices decreased from $685,945 in 2022 to $635,605 in 2023, and further to $633,875 in 2024. This decline coincided with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the softening of home prices by making mortgages more expensive and reducing buyer demand.
Looking ahead, predictive models suggest that average home prices in Foothill Square may experience a period of stability or modest growth over the next five years. The recent cooling trend, combined with higher interest rates, could lead to a more balanced market. Average rent prices are projected to continue their gradual upward trajectory, albeit at a slower pace than seen in recent years, as the rental market adjusts to the increased homeownership rates in the neighborhood.
In summary, Foothill Square has undergone a significant transformation in its housing market, characterized by a substantial increase in homeownership and average home prices. The neighborhood has defied some typical trends, with homeownership rates rising even as interest rates increased. The rental market has shown resilience, with average rents continuing to rise despite a decreasing proportion of renters. Recent data indicate a cooling housing market, likely influenced by higher interest rates, which may lead to a more stable period in the coming years.
