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Ridgeline, San Bernardino: Rising Home Values and Declining Ownership Rates Reshape 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
Ridgeline, a neighborhood in San Bernardino, California, has experienced significant shifts in its housing landscape over the past decade. This area has seen a general trend of decreasing homeownership rates, rising average home prices, and increasing average rent prices, reflecting broader changes in the local real estate market.
The homeownership rate in Ridgeline has steadily declined from 36% in 2013 to 21% in 2022, while average home prices have more than doubled during this period. In 2013, the average home price was $247,044, which increased to $616,730 by 2022. This inverse relationship suggests that as home prices rose, fewer residents were able to afford homeownership. For instance, when the homeownership rate was at 31% in 2014, the average home price was $296,187. By 2018, as the average home price climbed to $397,115, the homeownership rate had dropped to 20%.
Federal interest rates have played a role in shaping homeownership trends in Ridgeline. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relatively stable homeownership rates around 30%. However, as interest rates began to rise from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, homeownership rates dropped to 20% and 24% respectively. This trend suggests that higher interest rates may have contributed to making homeownership less attainable for Ridgeline residents.
As homeownership declined, the percentage of renters in Ridgeline increased from 64% in 2013 to 79% in 2022. Concurrently, average rent prices rose from $1,029 in 2013 to $1,402 in 2022, an increase of 36%. The population of Ridgeline fluctuated during this period, reaching a low of 832 in 2019 and a high of 996 in 2022. The increase in population, coupled with declining homeownership rates, likely contributed to the upward pressure on rent prices. For example, as the renter population grew from 72% in 2015 to 80% in 2018, average rent prices increased from $1,113 to $1,190.
Looking at the most recent data, the average home price in Ridgeline reached $617,886 in 2023 and further increased to $647,812 in 2024. This continued upward trend in home prices occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with elevated home prices, may further challenge potential homebuyers in the neighborhood.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Ridgeline will continue to rise, potentially reaching around $750,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,600 per month within the same timeframe. These projections are based on the consistent upward trends observed in both home prices and rent over the past decade.
In summary, Ridgeline has experienced a significant shift towards a renter-dominated market, with homeownership rates falling by nearly half since 2013. This change has been accompanied by substantial increases in both average home prices and rent prices. The interplay between rising property values, increasing interest rates, and population fluctuations has reshaped the housing dynamics in this San Bernardino neighborhood, creating a challenging environment for potential homebuyers and putting upward pressure on the rental market.
