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Rising Home Values and Ownership in Palm Springs' 92264 Zip Code: A Decade of Growth in a Desert Resort City
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 92264, located in Palm Springs, California, is an area known for its desert landscapes and resort atmosphere. Over the past decade, this region has experienced significant shifts in homeownership rates and property values, reflecting broader economic trends and local market dynamics.
The ownership percentage in zip code 92264 has shown a consistent upward trend, increasing from 62% in 2013 to 71% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $247,353, which more than doubled to $623,426 by 2022. This correlation suggests that despite rising prices, more residents were able to enter the housing market, possibly due to factors such as increased local wealth, attractive investment opportunities, or changing demographics.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. This low-interest environment likely contributed to the increase in homeownership, as it made mortgages more affordable for potential buyers. The ownership percentage rose from 62% to 69% during this period, aligning with the theory that lower interest rates encourage homeownership.
As homeownership increased, the percentage of renters in zip code 92264 naturally decreased, from 37% in 2013 to 29% in 2022. Despite this decline in the renter population, average rent prices showed an upward trajectory. The average rent increased from $1,171 in 2013 to $1,374 in 2022, a 17.3% rise. This trend suggests that even with fewer renters, demand for rental properties remained strong, possibly due to factors such as tourism or short-term rentals in this popular resort area.
Looking at the most recent data, the average home price in zip code 92264 for 2023 was $617,730, showing a slight decrease from 2022. In 2024, the average home price has stabilized at $617,908. Interestingly, this stabilization occurs alongside a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the cooling of home price growth in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 92264 will continue to experience moderate growth, albeit at a slower pace than seen in the early 2020s. This projection is based on the area's desirability, historical price trends, and the potential for continued economic growth in Palm Springs. For rent prices, we expect a steady increase over the next five years, driven by the area's popularity as a tourist destination and the limited supply of rental properties.
In summary, zip code 92264 has witnessed a significant shift towards homeownership over the past decade, accompanied by substantial increases in both home values and rent prices. The interplay between federal interest rates, local market dynamics, and the area's unique characteristics as a resort destination has shaped these trends. Looking forward, while growth may moderate, the area is likely to remain an attractive market for both homeowners and investors.
