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Rising Home Values and Ownership Trends in Zip Code 95465: Bodega's Coastal Real Estate Dynamics
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 95465, located in Bodega, California, is a rural area spanning 48.61 square miles. This coastal region has experienced fluctuating homeownership rates and significant changes in average home and rent prices over the past decade.
The homeownership rate in zip code 95465 has shown an overall upward trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 69%, which increased to 76% by 2018, marking the highest point in the observed period. However, it slightly decreased to 70% by 2022. Concurrently, average home prices have seen substantial growth. In 2013, the average home price was $601,278, which rose dramatically to $1,184,493 by 2022, representing a 97% increase over this period. This trend suggests a strong correlation between rising home values and homeownership rates in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of increasing homeownership in the zip code. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates continued to climb, reaching their peak in 2018. The sudden drop in interest rates to 0.38% in 2020 and 0.08% in 2021 may have contributed to maintaining relatively high homeownership rates despite economic uncertainties during this period.
Renter percentages in zip code 95465 have generally decreased as homeownership rates increased. In 2013, 31% of residents were renters, which dropped to 24% by 2018, before rising slightly to 30% in 2022. Average rent prices, however, have shown a significant upward trend. In 2013, the average rent was $1,264, which increased to $1,991 by 2018, representing a 57% increase. By 2022, the average rent had slightly decreased to $1,553, but still remained 23% higher than the 2013 level. These trends suggest that while fewer residents are renting, those who do are facing higher rental costs.
In 2023 and 2024, average home prices in zip code 95465 showed a slight decline from the 2022 peak. The average home price in 2023 was $1,152,983, decreasing to $1,132,636 in 2024. This represents a 4.4% decrease from the 2022 high. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and buyer demand.
Looking ahead, based on historical trends and current market conditions, we can expect average home prices in zip code 95465 to stabilize or potentially see modest growth over the next five years. The high interest rate environment may dampen rapid price increases, but the area's desirability and limited housing supply could maintain upward pressure on prices. Average rent prices are likely to continue their upward trajectory, albeit at a more moderate pace, driven by ongoing demand for rental properties in the area.
In summary, zip code 95465 has experienced a general trend of increasing homeownership rates and rising average home prices over the past decade. While renter percentages have decreased, average rent prices have significantly increased. Recent data shows a slight cooling in the housing market, likely influenced by rising interest rates. These trends reflect the dynamic nature of the local real estate market and its responsiveness to broader economic factors.
