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Perris, California: Soaring Home Values and Ownership in a Hot-Air Balloon Haven
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
Perris, California, located in Riverside County, is a rapidly growing city with a population of 80,258 as of 2022. Known for its hot-air ballooning and skydiving activities, Perris has experienced significant changes in homeownership rates and housing prices over the past decade. The city has seen a general trend of increasing homeownership, rising average home prices, and fluctuating average rent prices.
The homeownership rate in Perris has shown an upward trend, particularly in recent years. In 2013, 62% of residents owned their homes. This percentage increased to 68% by 2022, indicating a growing preference for homeownership in the city. Concurrently, average home prices in Perris have experienced substantial growth. In 2013, the average home price was $178,920. By 2022, this figure had surged to $511,556, representing a remarkable 186% increase over nine years. This parallel increase in homeownership rates and home prices suggests a strong demand for housing in Perris, possibly driven by factors such as population growth and economic development in the region.
Federal interest rates have played a significant role in shaping homeownership trends in Perris. From 2013 to 2016, interest rates remained relatively low, ranging from 0.11% to 0.40%. During this period, homeownership rates in Perris fluctuated between 60% and 63%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates in Perris actually increased from 66% to 65%. This trend continued into 2022, with homeownership reaching 68% despite interest rates climbing to 1.68%, suggesting that other local factors may have outweighed the impact of rising interest rates on homeownership decisions in Perris.
Renter percentages in Perris have generally declined as homeownership has increased. In 2013, 38% of residents were renters, but this figure dropped to 32% by 2022. Average rent prices, however, have shown an overall upward trend with some fluctuations. In 2013, the average rent was $1,278. It decreased to $1,180 in 2014 but then rose to $1,760 by 2022, representing a 37.7% increase from 2013 to 2022. This increase in average rent prices, coupled with the decrease in renter percentages, suggests that rising rents may be encouraging more residents to consider homeownership.
In 2023 and 2024, Perris experienced a slight dip in average home prices followed by a recovery. The average home price in 2023 was $509,254, a minor decrease from 2022. However, in 2024, prices rebounded to $528,245. This recent trend occurs alongside significantly higher federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in Perris.
Looking ahead, predictive models suggest that average home prices in Perris may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, possibly at a rate similar to or slightly below that of home prices. These projections are based on historical trends and current economic conditions.
In summary, Perris has experienced a significant increase in homeownership rates and average home prices over the past decade. Despite rising federal interest rates, the city has maintained a strong housing market with growing homeownership. Average rent prices have also increased, potentially contributing to the shift towards homeownership. As Perris continues to grow, these housing trends will likely play a crucial role in shaping the city's development and demographic composition in the coming years.
