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Rising Home Values and Ownership in Zip Code 85631: San Manuel's Evolving Desert Housing Market
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 85631, located in San Manuel, Arizona, has experienced significant shifts in homeownership and housing prices over the past decade. This area has seen a notable increase in homeownership rates, coupled with fluctuating average home and rent prices.
The ownership percentage in zip code 85631 has shown a strong upward trend, rising from 74% in 2013 to 84% in 2022. This increase in homeownership coincides with changes in average home prices. In 2013, the average home price was $61,992, which steadily increased to $155,346 by 2022, representing a substantial 150% increase over this period. The most dramatic rise occurred between 2020 and 2022, with average home prices jumping from $102,951 to $155,346, a 51% increase in just two years.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with the increase in homeownership from 74% to 85%. The accessibility of affordable financing likely contributed to this rise in homeownership. However, despite the sharp increase in interest rates to 1.68% in 2022, homeownership in the area remained high at 84%, suggesting other factors may be influencing ownership rates.
Conversely, the percentage of renters in zip code 85631 has decreased from 26% in 2013 to 16% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $694, which increased to $756 by 2022, a 9% rise. Interestingly, the highest average rent of $794 was recorded in 2021, coinciding with a slight increase in the renter percentage to 18% that year. The overall population decline from 7,399 in 2010 to 6,379 in 2022 may have influenced these rental market dynamics.
In 2023, the average home price in zip code 85631 slightly decreased to $153,287 from the previous year's $155,346. However, 2024 has seen a rebound, with average home prices rising to $159,018. This increase comes despite the federal interest rate climbing to 5.33% in 2024, up from 5.02% in 2023, indicating a resilient housing market in the area.
Looking ahead, predictive models suggest a continued upward trend in both average home prices and rent prices over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $185,000 by 2029. Average rent prices are expected to follow a similar trajectory, with annual increases of 2-4%, potentially reaching $850-$900 by 2029.
In summary, zip code 85631 has demonstrated a strong trend towards homeownership, with a significant increase in average home prices. Despite rising interest rates, the area's housing market remains robust. The rental market, while shrinking in terms of occupancy, has seen moderate increases in average rent prices. These trends, combined with the area's population dynamics, paint a picture of a changing housing landscape in San Manuel, Arizona.
