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Rising Home Values and Ownership Rates in Zip Code 93311: A Decade of Growth in Bakersfield's 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 93311, located in Bakersfield, California, has experienced significant growth and changes in its housing market over the past decade. This area has seen a notable increase in homeownership rates, rising average home prices, and fluctuating rental costs, reflecting the dynamic nature of its real estate landscape.
The homeownership rate in zip code 93311 has shown a general upward trend, increasing from 69% in 2013 to 71% in 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $245,677, which more than doubled to $448,627 by 2022. This represents an impressive 82.6% increase over nine years. The trend suggests a strong correlation between rising home values and increased homeownership, possibly indicating growing confidence in the local real estate market and improved economic conditions for residents.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 93311. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates coincided with the increase in homeownership rates from 69% to 70%. The accessibility of affordable financing likely contributed to this trend, making it easier for residents to purchase homes. However, as interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), the homeownership rate remained stable at 71%, suggesting a resilient local housing market.
Renter percentages in zip code 93311 have shown an inverse relationship to homeownership rates, decreasing from 30% in 2013 to 29% in 2022. Despite this slight decrease, average rent prices have steadily increased. In 2013, the average rent was $1,614, rising to $1,685 by 2022, an increase of 4.4%. This upward trend in rent prices, coupled with a decreasing renter population, might indicate a tightening rental market or an improvement in the quality of available rental properties. The population growth from 43,382 in 2013 to 50,649 in 2022 suggests that the demand for housing in the area remains strong, potentially putting upward pressure on both home prices and rents.
Looking at the most recent data, the average home price in zip code 93311 reached $451,749 in 2023 and further increased to $463,810 in 2024. This represents a 2.7% increase from 2023 to 2024, indicating continued growth in the housing market. Simultaneously, interest rates have risen to 5.33% in 2024, potentially impacting affordability for new homebuyers.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 93311 will continue to rise, albeit at a more moderate pace. Based on historical data and current economic factors, we project that average home prices could reach approximately $525,000 to $550,000 by 2029. For rent prices, the forecast suggests a continued upward trajectory, potentially reaching an average of $1,900 to $2,000 per month by 2029.
In summary, zip code 93311 in Bakersfield, California, has demonstrated a robust housing market characterized by increasing homeownership rates, rising home values, and steady growth in rental prices. The area has shown resilience in the face of changing interest rates and continues to attract new residents, as evidenced by its population growth. The forecasted trends suggest ongoing appreciation in both home values and rental rates, indicating sustained demand and potential for further development in this dynamic California zip code.
