Loading Content...
Rising Home Values and Ownership Trends in American River Canyon, Folsom
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
American River Canyon, located in Folsom, California, is a vibrant neighborhood that has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a general trend of increasing average home prices and average rent prices, while homeownership rates have fluctuated.
The relationship between homeownership rates and average home prices in American River Canyon shows some interesting patterns. In 2013, the homeownership rate was 61%, with an average home price of $417,157. As average home prices steadily increased, reaching $549,655 in 2017, the homeownership rate remained stable at 61%. However, by 2022, as average home prices surged to $847,015, the homeownership rate increased to 66%. This suggests that despite rising home prices, more residents were able to purchase homes in the neighborhood.
Federal interest rates have played a role in homeownership trends in American River Canyon. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 61-63%. As interest rates began to rise in 2017 (1.00%) and 2018 (1.83%), there was a slight dip in homeownership to 60%. However, even as interest rates continued to increase, homeownership rebounded, reaching 66% in 2022 when the federal interest rate was 1.68%.
Renter percentages and average rent prices in American River Canyon have shown a correlation over the years. In 2013, the renter-occupied percentage was 39%, with an average rent of $1,143. As the renter percentage decreased slightly to 37% in 2015, the average rent also dipped to $1,123. However, from 2016 to 2020, as the renter percentage increased to 40%, average rent prices steadily climbed, reaching $1,512 in 2020. Interestingly, in 2022, despite a decrease in the renter percentage to 34%, the average rent continued to rise to $1,724, possibly due to increased demand and limited supply.
In 2023, the average home price in American River Canyon experienced a slight decrease to $812,017, compared to the previous year. This trend continued into 2024, with a modest increase to $826,601. The federal interest rate in 2023 was 5.02%, rising to 5.33% in 2024, which may have influenced home buying decisions in the neighborhood.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in American River Canyon may continue to appreciate, albeit at a slower rate, potentially reaching around $900,000 by 2029. Average rent prices could also continue their upward trajectory, possibly surpassing $2,000 per month within the next five years. However, these projections are subject to various economic factors and local market conditions.
In summary, American River Canyon has demonstrated resilience in its housing market, with increasing homeownership rates despite rising home prices. The neighborhood has seen a general trend of appreciation in both home values and rent prices, with some fluctuations in response to broader economic conditions. The interplay between interest rates, homeownership, and rental markets will likely continue to shape the housing landscape in this Folsom neighborhood in the coming years.
