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Lexington Hills: Home Values and Ownership Trends in a Folsom Neighborhood
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
Lexington Hills, located in Folsom, California, is a vibrant neighborhood known for its suburban charm and proximity to outdoor recreational areas. Over the past decade, this community has experienced notable fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Lexington Hills has shown modest variability between 2013 and 2022. In 2013, 58% of residents owned their homes. This percentage peaked at 62% in 2017 before declining to 57% in 2022. Concurrently, average home prices in the neighborhood have demonstrated a consistent upward trend. In 2013, the average home price was $433,806, which steadily increased to $872,814 by 2022, representing a substantial 101% increase over this period.
The relationship between federal interest rates and homeownership rates in Lexington Hills aligns with established economic principles. As interest rates remained low between 2013 and 2016, hovering around 0.1% to 0.4%, homeownership rates increased from 58% to 60%. This trend supports the notion that lower interest rates generally encourage homeownership due to more affordable financing options. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a slight decline, settling at 57% in 2022.
Renter percentages in Lexington Hills have inversely mirrored homeownership rates, ranging from 38% to 45% between 2013 and 2022. Average rent prices have shown a general upward trend during this period. In 2013, the average rent was $1,774, which increased to $2,380 by 2022, representing a 34% rise. Notably, the steepest increase occurred between 2014 and 2015, when average rent jumped from $1,898 to $2,207, a 16% increase in a single year. This trend coincided with a population increase from 5,423 to 5,586 residents, suggesting that growing demand may have contributed to rising rental costs.
In 2023 and 2024, Lexington Hills experienced a slight correction in average home prices. The average home price in 2023 was $826,066, a 5.4% decrease from 2022. However, prices rebounded slightly in 2024 to $838,184, a 1.5% increase from the previous year. This period also saw a significant rise in federal interest rates, reaching 5.02% in 2023 and 5.33% in 2024, which may have influenced home buying decisions and market dynamics.
Looking ahead, predictive models suggest a continued but moderate increase in both average home prices and rent prices over the next five years. Home prices are projected to grow at an average annual rate of 2-3%, potentially reaching around $950,000 by 2029. Rent prices are expected to increase at a similar pace, potentially reaching an average of $2,700 per month by 2029. These projections assume stable economic conditions and no major market disruptions.
In summary, Lexington Hills has demonstrated resilience in its housing market over the past decade, with consistent growth in both home values and rental prices. The interplay between homeownership rates, housing prices, and interest rates reflects broader economic trends. While recent years have shown some market correction, the overall trajectory suggests a stable and gradually appreciating real estate market in this desirable Folsom neighborhood.
