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San Bernardino's Housing Market: Rising Home Values and Ownership Amid Interest Rate Fluctuations
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
San Bernardino, California, a vibrant city in the Inland Empire, has experienced significant changes in its housing market over the past decade. Known for its rich history and diverse community, San Bernardino has seen fluctuations in homeownership rates alongside notable increases in average home prices and rent costs. The relationship between homeownership percentages and average home prices in San Bernardino reveals an interesting trend. In 2013, the homeownership rate was 47%, with an average home price of $145,226. As average home prices steadily increased, reaching $283,833 in 2018, the homeownership rate remained relatively stable at 47%. However, a shift occurred in 2021 when homeownership peaked at 51%, coinciding with an average home price of $380,607. This suggests that despite rising home prices, more residents were able to enter the housing market. Federal interest rates have played a role in shaping homeownership trends in San Bernardino. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained steady at around 45-47%. As interest rates began to rise in 2017 (1.00%) and 2018 (1.83%), homeownership actually increased slightly to 49% and 47% respectively. This could indicate that residents were motivated to purchase homes before rates climbed further.
Renter percentages and average rent prices have shown their own distinct patterns. In 2013, 53% of residents were renters, with an average rent of $916. By 2017, the renter percentage had decreased slightly to 51%, while the average rent increased to $1,038. The trend continued, and by 2022, 52% of residents were renters, with the average rent reaching $1,349. This suggests that despite rising rent prices, a significant portion of the population continued to rely on rental housing, possibly due to the even steeper increase in home prices.
Looking at the most recent data, the average home price in San Bernardino reached $459,964 in 2023 and further increased to $485,902 in 2024. This represents a substantial rise from previous years, indicating a strong housing market in the city. Concurrently, federal interest rates have also seen a significant increase, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying decisions in the near future.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in San Bernardino will continue to rise, potentially reaching around $550,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,600 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, San Bernardino's housing market has demonstrated resilience and growth over the past decade. The city has maintained a relatively balanced mix of homeowners and renters, even as both home prices and rent costs have increased significantly. The recent surge in average home prices, coupled with rising interest rates, may present challenges for potential homebuyers in the coming years. However, the consistent upward trajectory of the housing market suggests continued demand for both owned and rented properties in San Bernardino.
