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Rising Home Values and Ownership in South Natomas: A Decade of Housing Market Transformation
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
South Natomas, a vibrant neighborhood in Sacramento, California, has experienced significant changes in its housing market over the past decade. This analysis examines the fluctuations in homeownership rates, average home prices, and rental trends from 2013 to 2024, offering insights into the area's economic dynamics. Homeownership rates in South Natomas have shown notable variations since 2013. Starting at 46% in 2013, the rate declined to 42% by 2018, before rebounding strongly to 52% in 2022. This upward trend in recent years coincided with a substantial increase in average home prices. In 2013, the average home price was $164,915, which more than doubled to $472,039 by 2022, representing a remarkable 186% increase over nine years. The interplay between federal interest rates and homeownership rates in South Natomas reveals interesting patterns. As interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates initially declined from 46% to 45%. However, as interest rates began to rise more significantly from 2017 to 2019 (1.00% to 2.16%), homeownership rates continued to decrease, reaching 42% in 2018. Interestingly, the trend reversed in 2020 when interest rates dropped to 0.38%, coinciding with an increase in homeownership to 47%. This upward trend continued through 2022, with homeownership reaching 52% despite rising interest rates, suggesting other factors were influencing home buying decisions in the neighborhood.
Renter percentages in South Natomas have generally moved inversely to homeownership rates, peaking at 56% in 2018 before declining to 48% in 2022. Average rent prices have shown a steady upward trend, increasing from $1,207 in 2013 to $1,443 in 2022, a 19.6% rise over nine years. This increase in average rent prices occurred alongside population growth, with the neighborhood's population expanding from 24,597 in 2013 to 27,643 in 2022, potentially contributing to increased rental demand.
In 2023 and 2024, South Natomas experienced a shift in the housing market. The average home price decreased from $472,039 in 2022 to $449,078 in 2023, a 4.9% decline. However, there was a slight recovery in 2024, with prices rising to $458,933, a 2.2% increase from 2023. This coincided with federal interest rates reaching 5.02% in 2023 and 5.33% in 2024, potentially influencing buying decisions and market dynamics.
Looking ahead, predictive models suggest that average home prices in South Natomas may continue to experience moderate growth over the next five years, potentially reaching around $500,000 by 2029. Average rent prices are also expected to rise, potentially surpassing $1,600 per month within the same timeframe, driven by ongoing population growth and housing demand in the area.
In summary, South Natomas has witnessed a significant increase in homeownership rates and average home prices over the past decade, particularly in recent years. Despite fluctuations in federal interest rates, the neighborhood has maintained a strong housing market. The rental market has also shown steady growth, with rising average rent prices reflecting the area's increasing desirability. As South Natomas continues to evolve, these trends suggest a dynamic and potentially prosperous future for both homeowners and renters in this Sacramento neighborhood.
