Loading Content...
Marshall School: A Renters' Haven with Rising Home Values in Sacramento
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Marshall School, a neighborhood in Sacramento, California, is characterized by a predominantly renter-occupied housing market and fluctuating property values. Over the past decade, the area has experienced significant changes in its demographic composition and real estate landscape, reflecting broader economic trends and local market dynamics.
The homeownership rate in Marshall School has shown modest fluctuations, with a general trend towards slight increases. In 2013, the neighborhood had a 15% homeownership rate, which remained relatively stable until 2021 when it peaked at 24%. However, by 2022, it had settled back to 18%. This trend coincides with changes in average home prices, which have seen substantial growth over the same period. In 2013, the average home price was $375,239, and it steadily increased to reach $746,080 by 2022, representing a remarkable 98.8% increase over nine years.
The relationship between federal interest rates and homeownership rates in Marshall School follows a somewhat expected pattern. From 2013 to 2015, when interest rates were exceptionally low (around 0.1%), homeownership rates slightly increased from 15% to 18%. As interest rates began to rise more significantly from 2016 onwards, homeownership rates remained relatively stable, fluctuating between 15% and 19%. This suggests that while low interest rates may have encouraged some homeownership, other factors such as rapidly increasing home prices likely counteracted this effect to some extent.
Renter percentages in Marshall School have consistently been high, ranging from 76% to 85% between 2013 and 2022. This high proportion of renters aligns with the trend in average rent prices, which have shown a steady increase over time. In 2013, the average rent was $753, and it rose to $1,413 by 2022, marking an 87.6% increase. The substantial rise in rent prices, coupled with the high renter population, suggests a strong demand for rental properties in the area, possibly driven by factors such as job market conditions, lifestyle preferences, or the challenge of affording homeownership in a rapidly appreciating market.
Looking at the most recent data, the average home price in Marshall School decreased to $697,256 in 2023 and further to $682,806 in 2024. This represents a 6.5% and 8.5% decrease from the 2022 peak, respectively. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. This combination of falling home prices and rising interest rates could potentially impact both the rental and homeownership markets in the neighborhood.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Marshall School may experience a period of stabilization or modest growth, assuming interest rates begin to moderate. Average rent prices are likely to continue their upward trajectory, albeit at a potentially slower pace, driven by the persistent demand for rental properties in the area.
In summary, Marshall School has demonstrated a resilient rental market with steadily increasing average rent prices, while homeownership rates have shown slight increases despite rapidly rising average home prices. The recent downturn in home prices coupled with higher interest rates may lead to a period of market adjustment, potentially affecting both ownership and rental dynamics in the coming years.
_city_california%2Fen-median-income-race-distribution-california-san-buenaventura-(ventura)-city-serra.webp%3F&w=3840&q=75)
