Loading Content...
San Diego's Zip Code 92120: Soaring Home Values and Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 92120, located in San Diego, California, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a general trend of increasing average home prices and average rent prices, with some fluctuations in the homeownership rate. The following analysis will explore these trends in detail, examining the relationships between ownership percentages, average home prices, and average rent prices.
From 2013 to 2022, the homeownership rate in zip code 92120 experienced minor fluctuations, starting at 71% in 2013 and ending at 67% in 2022. During this same period, average home prices saw a substantial increase. In 2013, the average home price was $467,774, and by 2022, it had risen to $976,843, representing a 109% increase over nine years. Despite the rising home prices, the homeownership rate remained relatively stable, only decreasing by 4 percentage points. This suggests that other factors, such as local economic conditions or demographic shifts, may have helped maintain homeownership levels in the face of increasing property values.
Federal interest rates have played a role in homeownership trends in zip code 92120. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.4%, which coincided with a period of relative stability in homeownership rates (around 71%). As interest rates began to rise from 2017 to 2019 (1% to 2.16%), there was a slight decrease in homeownership to 70%. The sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08%, respectively) corresponded with a brief stabilization of homeownership at 70%. However, as interest rates increased significantly in 2022 to 1.68%, homeownership declined to 67%, suggesting a potential inverse relationship between interest rates and homeownership in this area.
Renter percentages in zip code 92120 have shown a gradual increase from 28% in 2013 to 33% in 2022. This trend has been accompanied by a steady rise in average rent prices. In 2013, the average rent was $1,843, which increased to $2,233 by 2022, representing a 21% increase over nine years. The population in the zip code also grew during this period, from 24,736 in 2013 to 27,976 in 2022, potentially contributing to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, average home prices in zip code 92120 continued to rise, reaching $990,498 in 2023 and $1,067,317 in 2024. This represents a further increase of 9.3% from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and property values in the area.
Looking ahead, based on historical trends and current market conditions, we can forecast potential 5-year trends for average home and rent prices in zip code 92120. Assuming a continuation of the current growth rate, average home prices could potentially reach around $1,300,000 by 2029. For average rent prices, if the current trend persists, we might see values approaching $2,600 per month in the same timeframe.
In summary, zip code 92120 has demonstrated resilience in homeownership rates despite significant increases in average home prices. The area has seen a gradual shift towards more renters, accompanied by steady increases in average rent prices. The relationship between federal interest rates and homeownership rates suggests that future changes in interest rates could impact homeownership trends. As property values continue to rise, it will be crucial to monitor how these trends affect the local real estate market and community demographics in the coming years.
