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Mace Ranch: Rising Home Values and Shifting Ownership Trends in a Davis, California Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Mace Ranch, a neighborhood in Davis, California, has experienced significant changes in homeownership and property values over the past decade. This area has seen a general trend of decreasing owner-occupancy, rising average home prices, and fluctuating average rent prices. The homeownership rate in Mace Ranch has steadily declined from 75% in 2013 to 51% in 2022. During this same period, average home prices have shown a consistent upward trend. In 2013, the average home price was $520,142, which increased to $904,816 by 2022, representing a 74% increase over nine years. This inverse relationship between homeownership rates and home prices suggests that rising property values may be making homeownership less attainable for residents in the area.
Federal interest rates have played a role in homeownership trends in Mace Ranch. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.40%), homeownership rates remained relatively stable, ranging from 70% to 79%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more rapidly, falling from 69% in 2017 to 51% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates decreased, the percentage of renters in Mace Ranch increased from 25% in 2013 to 49% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2013, the average rent was $1,771, which fluctuated over the years, reaching $1,540 in 2022. The population of Mace Ranch has also varied, with 1,447 residents in 2013, peaking at 1,838 in 2021, and settling at 1,724 in 2022. These fluctuations in population and rent prices suggest a complex rental market influenced by various factors beyond simple supply and demand.
In 2023, the average home price in Mace Ranch slightly decreased to $894,821 from the previous year's $904,816. However, in 2024, the average home price has rebounded to $923,485. This recent uptick occurs despite the federal interest rate rising to 5.33% in 2024, which is significantly higher than the 1.68% rate in 2022. This suggests that other factors, such as local market conditions or housing demand, may be outweighing the potential dampening effect of higher interest rates on home prices.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Mace Ranch are likely to continue their upward trajectory over the next five years, albeit potentially at a slower pace due to the higher interest rate environment. Average rent prices may see moderate increases as the rental market adjusts to the growing renter population and potential shifts in housing demand. However, these projections are subject to change based on various economic factors and local market conditions.
In summary, Mace Ranch has experienced a significant shift from a predominantly owner-occupied neighborhood to one with a more balanced mix of owners and renters. This transition has occurred alongside substantial increases in average home prices, while average rent prices have remained relatively stable. The interplay between federal interest rates, homeownership rates, and property values highlights the complex dynamics shaping this California neighborhood's housing market.
