However, the most recent data indicates a significant shift in this trend. After reaching its peak in 2022, Lakewood's average home prices began to decline. The average price dropped to $879,723 in 2023, a decrease of about 3.4% from the previous year. This downward trend continued into 2024, with prices further decreasing to $856,504, marking a total decline of approximately 6% from the 2022 peak. This recent downturn positions Lakewood as the neighborhood with the most significant decrease in housing prices in Sunnyvale over the past decade, addressing one of the key sub-topics of interest.

The factors contributing to Lakewood's current status as the most affordable neighborhood and its recent price decline are multifaceted. One potential contributing factor is the neighborhood's demographic composition. As of 2022, Lakewood had a diverse population with a significant Asian (46.1%) and Hispanic (23.8%) presence. This diversity could influence housing demand and pricing dynamics in the area.

Another factor to consider is the neighborhood's income levels. The median income in Lakewood has shown fluctuations over recent years. After reaching a peak of $140,900 in 2021, it decreased to $130,165 in 2022. This recent decline in median income could be correlated with the downturn in housing prices, as it may affect the purchasing power of potential homebuyers in the area.

The employment-to-population ratio in Lakewood has remained relatively stable, with a slight increase from 0.671 in 2021 to 0.69 in 2022. This stability in employment levels might have helped to prevent a more drastic fall in housing prices, potentially contributing to Lakewood's position as the neighborhood with the most stable housing prices in Sunnyvale over the past decade – the second sub-topic of interest.

It's also worth noting the changes in housing occupancy patterns in Lakewood. The percentage of renter-occupied housing units has been steadily increasing, from 33.86% in 2013 to 46.54% in 2022. Conversely, the percentage of owner-occupied units has decreased from 59.37% in 2013 to 53.46% in 2022. This shift towards more rental properties could be influencing the overall housing market in the neighborhood, potentially contributing to the recent price decline and Lakewood's current status as the most affordable neighborhood.

In conclusion, Lakewood's distinction as the neighborhood with the lowest average housing prices in Sunnyvale in 2024 is the result of a complex interplay of factors. The recent decline in prices, following a period of substantial growth, has positioned Lakewood as both the most affordable neighborhood and the one with the most significant price decrease over the past decade. Factors such as demographic composition, income levels, employment stability, and changes in housing occupancy patterns all appear to have played roles in shaping Lakewood's current housing market status. As Sunnyvale continues to evolve, Lakewood's housing market will likely remain an important indicator of broader trends in affordability and market dynamics within the city.