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Rising Home Values and Shifting Ownership in West Davis Manor: A Decade of Change
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
West Davis Manor, a neighborhood in Davis, California, has experienced significant shifts in its housing landscape over the past decade. This area has seen notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The neighborhood has witnessed a steady decline in homeownership rates, dropping from 65% in 2014 to 44% in 2022. This decrease in owner-occupied housing has coincided with a substantial increase in average home prices. In 2014, the average home price in West Davis Manor was $562,703. By 2022, this figure had risen dramatically to $963,544, representing a 71% increase over eight years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making it increasingly difficult for residents to purchase homes in the area.
Federal interest rates have played a significant role in shaping homeownership trends in West Davis Manor. From 2010 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, homeownership rates in the neighborhood were relatively stable, ranging from 61% to 65%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply, falling to 44% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates decreased, the percentage of renters in West Davis Manor increased from 35% in 2014 to 56% in 2022. This shift towards renting has been accompanied by a significant rise in average rent prices. In 2013, the average rent was $1,364 per month. By 2022, it had climbed to $1,688, an increase of nearly 24% over nine years. The population of the neighborhood has remained relatively stable during this period, fluctuating between 1,840 and 2,356 residents, suggesting that the rise in rent prices is more likely due to market demand and property value appreciation rather than population pressure.
In 2023 and 2024, West Davis Manor has seen a slight cooling in the housing market. The average home price in 2023 was $945,735, a modest decrease from the 2022 peak. However, 2024 has seen a slight rebound, with average home prices reaching $963,767. This aligns with the current federal interest rate of 5.33% in 2024, which remains relatively high compared to the previous decade, potentially influencing home buying decisions.
Looking ahead, predictive models suggest that average home prices in West Davis Manor may continue to rise moderately over the next five years, potentially reaching around $1.1 million by 2029. Average rent prices are also expected to increase, potentially surpassing $2,000 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, West Davis Manor has experienced a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in both average home prices and rent. The interplay between federal interest rates, local market dynamics, and broader economic factors has contributed to these trends. As the neighborhood continues to evolve, it will likely face ongoing challenges in balancing housing affordability with property value appreciation.
