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Rising Home Values and Ownership in San Diego's Zip Code 92105: A Decade of Resilient Housing Market Growth
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 92105, located in San Diego, California, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 92105 has shown a gradual increase over the years, rising from 28% in 2015 to 32% in 2022. This upward trend in homeownership coincides with a substantial increase in average home prices. In 2010, the average home price in this area was $206,850. By 2022, it had risen dramatically to $633,508, representing a 206% increase over 12 years. This sharp rise in home values may have contributed to the slight increase in homeownership, as existing homeowners benefited from growing equity.
Federal interest rates have played a significant role in shaping homeownership trends. From 2010 to 2021, interest rates remained historically low, ranging from 0.08% to 2.16%. These low rates likely supported the gradual increase in homeownership by making mortgages more affordable. However, the rapid rise in home prices may have offset some of the benefits of low interest rates, particularly for first-time homebuyers.
The rental market in zip code 92105 has also seen notable changes. The percentage of renters decreased slightly from 72% in 2015 to 68% in 2022. Despite this minor decrease, average rent prices have steadily increased. In 2013, the average rent was $1,144, and by 2022, it had risen to $1,367, an increase of 19.5% over nine years. This rise in rent prices, while significant, was not as dramatic as the increase in home prices during the same period.
In 2023 and 2024, the housing market in zip code 92105 continued to evolve. The average home price in 2023 was $648,689, showing a further increase from 2022. In 2024, the average home price reached $691,460, indicating continued growth in the real estate market. Notably, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 92105 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, driven by ongoing demand for rental properties in this urban area. However, the rate of increase for both home prices and rents may moderate compared to the rapid growth seen in the past decade.
In summary, zip code 92105 has experienced a significant increase in both homeownership rates and average home prices from 2010 to 2024. The rental market, while showing a slight decrease in the percentage of renters, has seen steady growth in average rent prices. The interplay between rising property values, changing interest rates, and demographic shifts will likely continue to shape the housing market in this San Diego neighborhood in the coming years.
