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Rising Home Values and Shifting Ownership in Zip Code 93640: Mendota's Decade of Housing Market Changes
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 93640, located in Mendota, California, has experienced significant demographic and housing market changes over the past decade. This area has seen fluctuations in homeownership rates, alongside substantial increases in average home prices and average rent prices.
The homeownership rate in zip code 93640 has shown notable variability from 2013 to 2022. In 2013, the homeownership rate stood at 41%. This figure declined to a low of 33% in 2016 before rebounding to 46% in 2020. By 2022, the rate had settled at 43%. During this same period, average home prices in the area demonstrated a strong upward trend. In 2013, the average home price was $103,025. This figure more than doubled by 2022, reaching $281,147, representing a substantial 173% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. As interest rates remained low between 2013 and 2015 (0.11% to 0.13%), homeownership rates actually declined from 41% to 37%. However, when interest rates began to rise more significantly from 2016 to 2018 (0.4% to 1.83%), homeownership rates stabilized and then increased, reaching 46% by 2020 when interest rates dropped again to 0.38%. This suggests that while interest rates play a role, other local factors may have a stronger influence on homeownership in this area.
Renter percentages and average rent prices in zip code 93640 have also shown notable trends. The percentage of renters increased from 59% in 2013 to a peak of 67% in 2016, before decreasing to 57% in 2022. Average rent prices, however, did not consistently follow this pattern. In 2013, the average rent was $821. It decreased to $756 in 2016 when the renter percentage was at its highest. By 2022, despite a lower percentage of renters, the average rent had increased to $863. This suggests that factors beyond supply and demand, such as overall economic conditions and housing quality improvements, may be influencing rent prices in the area.
In 2023 and 2024, the housing market in zip code 93640 continued its upward trajectory. The average home price in 2023 was $287,394, a 2.2% increase from 2022. In 2024, it further increased to $297,562, representing a 3.5% rise from 2023. Notably, federal interest rates also saw significant increases during this period, rising to 5.02% in 2023 and 5.33% in 2024, which are the highest rates since 2007.
Looking ahead, predictive models suggest that the upward trend in both average home prices and average rent prices is likely to continue over the next five years. Based on historical data and current market conditions, average home prices in zip code 93640 could potentially reach around $350,000 by 2029. Average rent prices may similarly increase, potentially approaching $950 per month in the same timeframe.
In summary, zip code 93640 has experienced significant changes in its housing market over the past decade. The area has seen substantial increases in average home prices, fluctuating homeownership rates, and gradually rising average rent prices. Despite periods of high federal interest rates, the local housing market has shown resilience and continued growth. These trends, coupled with the area's increasing population density, suggest a dynamic and evolving real estate landscape in Mendota, California.
