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Housing Market Trends in Zip Code 92123: Rising Home Values and Shifting Ownership Patterns in San Diego's Mission Valley Area
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 92123, located in San Diego, California, has experienced significant changes in its housing market over the past decade. This area, known for its proximity to Mission Valley and Kearny Mesa, has seen a shift in homeownership rates and a substantial increase in both average home prices and average rent prices.
The homeownership rate in zip code 92123 has shown a steady decline from 2013 to 2022. In 2013, 50% of housing units were owner-occupied, but by 2022, this figure had decreased to 43%. This 7 percentage point drop coincides with a dramatic increase in average home prices. In 2013, the average home price was $405,510, which more than doubled to $897,638 by 2022. This inverse relationship suggests that rising home prices may have made homeownership less accessible for many residents in the area.
Federal interest rates have played a role in shaping homeownership trends in zip code 92123. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable, hovering around 48-49%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined more rapidly. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership decreased, the percentage of renters in zip code 92123 increased from 49% in 2013 to 57% in 2022. This shift towards renting coincided with a significant rise in average rent prices. In 2013, the average rent was $1,924, which increased to $2,291 by 2022, representing a 19% increase over nine years. The growing renter population, coupled with rising rent prices, suggests a competitive rental market in the area. This trend may be partly attributed to the area's population growth, which increased from 28,448 in 2013 to 33,359 in 2022, potentially putting pressure on the rental market.
The housing market in zip code 92123 continued to evolve in 2023 and 2024. The average home price reached $916,524 in 2023 and further increased to $985,505 in 2024, representing a 7.5% year-over-year increase. This growth occurred despite the Federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen in over a decade. These high interest rates, combined with rising home prices, may further impact homeownership rates in the area.
Looking ahead, predictive models suggest that average home prices in zip code 92123 may continue to rise over the next five years, potentially reaching or exceeding $1.2 million by 2029. Average rent prices are also expected to increase, potentially surpassing $2,700 per month within the same timeframe. These projections are based on historical trends and assume continued population growth and economic stability in the San Diego area.
In summary, zip code 92123 has experienced a notable shift from homeownership to renting over the past decade, driven by rapidly increasing home prices and fluctuating interest rates. The area has seen substantial growth in both average home prices and average rent prices, reflecting a dynamic and competitive housing market. As the population continues to grow and housing costs rise, these trends are likely to persist, potentially reshaping the demographic and economic landscape of this San Diego neighborhood in the coming years.
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