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Lompoc: Homeownership Rises Amid Increasing Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lompoc, California, a city in Santa Barbara County with a rich history in aerospace and agriculture, has experienced significant changes in its housing market over the past decade. Known for its flower fields and proximity to Vandenberg Space Force Base, Lompoc has seen a general trend of increasing homeownership rates, rising average home prices, and fluctuating average rent prices.
The homeownership rate in Lompoc has shown a significant upward trend, particularly in recent years. In 2013, the homeownership rate was 44%, and it remained relatively stable until 2020 when it began to rise. By 2022, the rate had increased to 50%, marking a substantial 6 percentage point increase over two years. This shift towards homeownership coincides with a dramatic increase in average home prices. In 2013, the average home price in Lompoc was $222,254. By 2022, it had more than doubled to $519,409, representing a 133.7% increase over nine years.
The relationship between federal interest rates and homeownership rates in Lompoc appears to follow established trends. As interest rates remained low between 2013 and 2021, ranging from 0.08% to 1.83%, homeownership rates gradually increased. The significant jump in homeownership from 45% in 2020 to 50% in 2022 occurred despite a slight increase in interest rates to 1.68% in 2022, suggesting other factors may have influenced this trend.
Renter percentages in Lompoc have naturally mirrored the homeownership trends, decreasing from 57% in 2019 to 50% in 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $1,316, which decreased to $1,235 in 2014 before steadily rising to $1,418 in 2019. Interestingly, despite the decrease in renter percentage, average rent prices remained relatively high, reaching $1,334 in 2022. This could indicate a tightening rental market despite the shift towards homeownership.
In 2023 and 2024, Lompoc's housing market continued to evolve. The average home price in 2023 was $527,258, showing a slight increase from 2022. In 2024, the average home price further rose to $559,931, indicating continued growth in the market. Notably, federal interest rates increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the city.
Looking ahead, predictive models suggest that average home prices in Lompoc may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are likely to remain stable or increase moderately, influenced by the balance between housing supply and population growth. The city's population has shown modest growth, increasing from 44,243 in 2019 to 44,755 in 2022, which may continue to drive demand for both owned and rented housing.
In summary, Lompoc has experienced a significant shift towards homeownership, with the rate increasing from 43% to 50% between 2019 and 2022. This trend has occurred alongside substantial growth in average home prices, more than doubling from 2013 to 2022. Despite the decrease in renter percentages, average rent prices have remained relatively high, suggesting a competitive rental market. The recent increases in federal interest rates to over 5% in 2023 and 2024 may influence future housing market dynamics in Lompoc, potentially affecting both homeownership rates and housing affordability in the coming years.
