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Rising Home Values and Ownership Trends in Zip Code 92027: Escondido's Resilient 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 92027, located in Escondido, California, has experienced significant changes in homeownership rates and property values over the past decade. This area, covering 59.25 square miles, has seen fluctuations in its population and housing market dynamics, reflecting broader economic trends and local factors.
The homeownership rate in zip code 92027 has shown a gradual increase from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 60%, which rose to 62% by 2020 and remained stable at 61% in 2022. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $319,086, which more than doubled to $726,455 by 2022, representing a 127.7% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership rates from 59% to 62%. This suggests that despite rising interest rates, other factors such as local economic conditions and housing supply may have influenced homeownership decisions in this area.
Renter percentages in zip code 92027 have shown a slight decrease from 2013 to 2022, moving from 40% to 39%. During this period, average rent prices increased significantly. In 2013, the average rent was $1,573, which rose to $1,855 by 2022, marking an 18% increase. The population in the zip code remained relatively stable during this period, with 56,456 residents in 2013 and 57,000 in 2022, suggesting that rent increases were not primarily driven by population growth but possibly by other factors such as housing demand and overall property value appreciation.
In 2023 and 2024, the average home prices in zip code 92027 continued to rise, reaching $730,643 in 2023 and $778,959 in 2024. This represents a 7.2% increase from 2022 to 2024. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends and property values in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 92027 will continue to rise, potentially reaching around $900,000 by 2029. This projection is based on the historical growth rate and assumes relatively stable economic conditions. For rent prices, the 5-year forecast suggests an increase to approximately $2,200 per month by 2029, continuing the upward trend observed in recent years.
In summary, zip code 92027 has experienced a significant increase in property values and rent prices over the past decade, with a slight trend towards increased homeownership. The area has shown resilience in maintaining homeownership rates despite rising home prices and fluctuating interest rates. The continued increase in both home prices and rents suggests a strong demand for housing in this Escondido zip code, which is likely to persist in the coming years.
