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Home Values and Ownership in Zip Code 95206: Stockton's Resilient Housing Market
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
Zip code 95206, located in Stockton, California, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a notable shift in its real estate landscape, with fluctuations in both ownership percentages and average home values.
The homeownership rate in zip code 95206 has shown an interesting trend. In 2013, the area had a 58% homeownership rate, which declined to 50% by 2018. However, there has been a recent reversal of this trend, with homeownership rising back to 58% in 2022. This U-shaped pattern in homeownership coincides with changes in average home prices. In 2013, the average home price was $127,200, which steadily increased to $276,671 by 2018. As homeownership rates began to recover, average home prices continued to rise, reaching $434,534 in 2022. This suggests a complex relationship between home values and ownership rates in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 95206. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates decreased from 58% to 51%, possibly due to other economic factors outweighing the benefits of low interest rates. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 50-52%. Interestingly, the sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with an increase in homeownership to 54% and 56%, suggesting that extremely low rates may have encouraged more people to buy homes.
Renter percentages and average rent prices have also shown notable trends. In 2013, 42% of residents were renters, with an average rent of $1,257. As the renter population increased to 50% by 2018, average rent rose to $1,286. However, by 2022, the renter percentage decreased to 41%, while average rent reached $1,271. This suggests that despite a decrease in the renter population, demand for rental properties remained strong enough to maintain relatively high rent prices.
In 2023 and 2024, we see a slight correction in the housing market of zip code 95206. The average home price decreased from $434,534 in 2022 to $419,632 in 2023, before rising slightly to $430,817 in 2024. This occurs against a backdrop of significantly higher interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher rates may be contributing to the moderation in home prices.
Looking ahead, predictive models suggest that average home prices in zip code 95206 may continue to rise moderately over the next five years, potentially reaching around $480,000 by 2029. Average rent prices are also expected to increase, possibly approaching $1,500 per month in the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 95206 has experienced a resurgence in homeownership rates, rising from a low of 50% to 58% in recent years. This occurred alongside a significant increase in average home prices, which more than tripled from 2013 to 2022. The rental market has remained robust, with average rents increasing despite fluctuations in the renter population. The recent moderation in home prices, coupled with higher interest rates, suggests a potential stabilization of the market. As the area continues to evolve, these trends will likely shape the future of housing in this Stockton neighborhood.
