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Rising Home Values and Ownership Rates in Zip Code 94513: Brentwood's Evolving 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 94513, located in Brentwood, California, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a notable increase in both population and average home prices, with a concurrent shift in the balance between owners and renters. The ownership percentage in zip code 94513 has shown a strong upward trend, rising from 72% in 2016 to 82% in 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2016, the average home price was $526,950, which grew to $865,048 by 2022, representing a 64% increase over six years. This trend suggests that despite rising prices, more residents were able to enter the housing market, possibly due to strong economic conditions or favorable financing options.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 94513. The period from 2016 to 2020 saw relatively low interest rates, ranging from 0.4% to 2.16%, which likely contributed to the increase in homeownership from 72% to 79% during this time. As interest rates remained low, reaching 0.08% in 2021, homeownership continued to rise, peaking at 82% in 2022. This aligns with the well-established trend that lower interest rates generally encourage homeownership by making mortgages more affordable.
Conversely, the percentage of renters in zip code 94513 has decreased from 28% in 2016 to 18% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend. In 2016, the average rent was $2,248, which increased to $2,294 by 2022. The peak average rent was observed in 2021 at $2,449. This trend suggests that even as fewer residents chose to rent, the demand for rental properties remained strong enough to support rising prices, possibly due to the growing population in the area, which increased from 66,648 in 2016 to 76,874 in 2022.
In 2023 and 2024, the housing market in zip code 94513 experienced some fluctuations. The average home price in 2023 was $812,081, showing a slight decrease from the 2022 peak. However, in 2024, the average home price rebounded to $825,381. This recovery occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in zip code 94513 may continue to rise moderately over the next five years, potentially reaching around $900,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $2,600 by 2029. However, these projections should be considered in light of potential economic changes and shifts in interest rates.
In summary, zip code 94513 has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. The area has shown resilience in its housing market, with home prices and ownership rates growing despite fluctuations in interest rates. The rental market, while shrinking in terms of percentage, has maintained strength in pricing. These trends reflect a dynamic and evolving housing landscape in Brentwood, California.
