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Housing Market Trends in Zip Code 92405: Rising Home Values and Shifting Ownership Patterns
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 92405, located in San Bernardino, California, has experienced significant changes in its housing market over the past decade. This urban area, spanning 5.13 square miles, has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 92405 has shown a slight overall increase from 2013 to 2022, despite some fluctuations. In 2013, the homeownership rate was 46%, and by 2022, it had risen to 49%. This upward trend coincided with a substantial increase in average home prices. In 2013, the average home price was $127,431, which more than tripled to $418,359 by 2022, representing a 228% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), the homeownership rate increased from 46% to 48%. However, as interest rates began to rise from 2016 onwards, the homeownership rate initially dipped to 46% but then rebounded, reaching 49% in 2022 despite higher interest rates. This suggests that other factors, such as local economic conditions and housing supply, may have played a significant role in homeownership trends in this area.
Renter percentages in zip code 92405 have shown a slight overall decrease from 54% in 2013 to 51% in 2022, inversely mirroring the homeownership trend. Interestingly, average rent prices have not followed a consistent upward trend like home prices. In 2013, the average rent was $1,237, which peaked at $1,262 in 2014 before declining to $1,172 in 2022. This represents a 5.3% decrease in average rent over the nine-year period. The population of the zip code increased from 30,906 in 2013 to 32,419 in 2022, which may have influenced rental market dynamics.
In 2023, the average home price in zip code 92405 reached $431,107, showing a continued upward trend. By 2024, it further increased to $454,753. These figures represent actual values, not predictions. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 92405 may continue to rise over the next five years, potentially reaching around $550,000 by 2029. However, this growth rate may slow compared to the rapid increases seen in recent years. Average rent prices are projected to stabilize and potentially increase moderately, possibly reaching around $1,300 to $1,400 per month by 2029.
In summary, zip code 92405 has experienced a notable increase in homeownership rates and a substantial rise in average home prices from 2013 to 2022. Despite fluctuations in federal interest rates, the local housing market has shown resilience. The rental market has seen a slight decrease in the percentage of renters and a modest decline in average rent prices. With continued population growth and rising home prices, this area may face challenges in maintaining housing affordability, particularly for renters and first-time homebuyers.
