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Rising Home Values and Ownership Dynamics in Zip Code 94804: Richmond's Decade of Change
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
Zip code 94804, located in Richmond, California, encompasses an area of 6.67 square miles. This diverse urban area has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. The ownership percentage has remained relatively stable, while average home prices and average rent prices have shown notable increases.
Homeownership rates in zip code 94804 have fluctuated slightly between 2013 and 2022. In 2013, the ownership rate was 47%, and by 2022, it had increased marginally to 48%. During this period, average home prices experienced substantial growth. In 2013, the average home price was $220,586, which more than tripled to $663,605 by 2022. This significant increase in average home prices, despite relatively stable homeownership rates, suggests that existing homeowners have benefited from appreciating property values while potential new buyers may face affordability challenges.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained steady at 45-47%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a slight increase to 48%. This trend suggests that while lower interest rates generally encourage homeownership, other factors such as local economic conditions and housing supply also play significant roles in determining homeownership rates.
Renter percentages in zip code 94804 have remained relatively stable, with a slight decrease from 53% in 2013 to 52% in 2022. During this period, average rent prices have shown an upward trend. In 2013, the average rent was $1,373, which increased to $1,442 by 2022, representing a 5% increase over nine years. It's worth noting that the population in this zip code grew from 40,449 in 2013 to 45,346 in 2022, potentially contributing to the demand for rental properties and the subsequent rise in average rent prices.
In 2023 and 2024, we observe interesting developments in the housing market for zip code 94804. The average home price in 2023 was $616,691, showing a decline from the 2022 peak of $663,605. This trend continues into 2024, with the average home price slightly increasing to $616,933. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the stabilization of home prices in the area.
Looking ahead, predictive models forecast a potential continuation of the current trends for the next five years. Average home prices are expected to stabilize or experience modest growth, potentially reaching around $650,000 to $700,000 by 2029. Average rent prices are projected to continue their gradual upward trajectory, potentially reaching $1,600 to $1,700 per month by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 94804 has demonstrated resilience in its housing market over the past decade. Despite substantial increases in average home prices, homeownership rates have remained relatively stable. The rental market has seen moderate growth in average rent prices, aligning with population increases. The recent stabilization of home prices, coupled with rising interest rates, suggests a potential shift in the market dynamics. As we move forward, the interplay between housing affordability, interest rates, and population growth will likely continue to shape the real estate landscape in this Richmond zip code.
