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Home Values and Ownership Trends in Zip Code 85225: A Decade of Growth and Change in Chandler, Arizona
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 85225, located in Chandler, Arizona, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a notable shift in the balance between owners and renters, along with substantial fluctuations in average home and rent prices.
The homeownership rate in zip code 85225 has shown a general upward trend since 2013. In 2013, the homeownership rate was 57%, and it increased to 60% by 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $171,118, and by 2022, it had risen dramatically to $466,229, representing a 172% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. From 2013 to 2016, when interest rates were very low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable around 55-56%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate actually increased to 60%. This suggests that other factors, such as local economic conditions or housing market dynamics, may have had a stronger influence on homeownership than interest rates in this particular area.
Renter percentages in zip code 85225 have generally decreased as homeownership rates increased. In 2013, 42% of residents were renters, which dropped to 40% by 2022. Interestingly, average rent prices have steadily increased during this period, from $1,215 in 2013 to $1,316 in 2022, a 8.3% increase. This rise in rent prices occurred despite the area's population remaining relatively stable, with 70,113 residents in 2013 and 72,644 in 2022.
Looking at the most recent data, the average home price in zip code 85225 decreased to $443,919 in 2023, a 4.8% drop from 2022. However, in 2024, prices have begun to rise again, reaching $458,360. This recent uptick occurs despite high federal interest rates of 5.02% in 2023 and 5.33% in 2024, which typically discourage home buying due to increased borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 85225 will continue to rise, albeit at a more moderate pace than seen in the early 2020s. We expect average home prices to reach approximately $520,000 by 2029. Average rent prices are also projected to increase, potentially reaching around $1,500 per month in the same timeframe.
In summary, zip code 85225 has experienced a significant increase in homeownership rates and average home prices over the past decade, despite rising interest rates. The area has also seen steady growth in average rent prices, even as the percentage of renters decreased. Recent data shows a slight cooling in the housing market, but prices are beginning to rise again. The coming years are likely to see continued, though more moderate, growth in both home prices and rents in this Chandler, Arizona zip code.
