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Tallac Village: Rising Home Values and Stable Ownership in a Dynamic Sacramento Neighborhood
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
Tallac Village, a neighborhood in Sacramento, California, has experienced significant changes in its housing market over the past decade. This area has shown interesting trends in homeownership rates, average home prices, and average rent prices, reflecting both broader economic trends and local market conditions. The relationship between homeownership percentages and average home prices in Tallac Village reveals notable patterns. In 2013, the homeownership rate was 67%, with average home prices at $128,050. Over the years, as average home prices increased steadily, homeownership rates fluctuated. By 2022, the homeownership rate stood at 64%, while average home prices had risen dramatically to $416,773. This represents a 225% increase in average home prices over a nine-year period, while homeownership rates remained relatively stable.
Federal interest rates have influenced homeownership trends in Tallac Village. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained fairly steady, between 65% and 67%. As interest rates began to rise more significantly from 2017 onwards, there was a slight decline in homeownership, dropping to 62% in 2017. However, the relationship is not always direct, as evidenced by the 68% homeownership rate in 2020 despite a low 0.38% interest rate, suggesting other factors also influence homeownership decisions in this neighborhood.
Renter percentages and average rent prices in Tallac Village have shown a generally positive correlation. In 2013, the renter-occupied percentage was 33%, with an average rent of $1,103. By 2022, the renter percentage had increased slightly to 36%, while average rent had risen to $1,797, representing a 63% increase over nine years. The most significant jump in average rent occurred between 2020 and 2021, increasing from $1,345 to $1,747, a 30% rise in a single year. This coincided with a notable increase in the renter percentage from 32% to 43%, possibly indicating a shift in housing preferences or affordability issues.
Looking at the most recent data, average home prices in Tallac Village experienced a slight decrease in 2023, dropping to $398,509 from $416,773 in 2022. However, the market has shown signs of recovery in 2024, with average home prices rising to $411,516. This rebound is occurring despite the high federal interest rate of 5.33% in 2024, which typically would discourage home purchases due to increased borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Tallac Village will continue to rise moderately, potentially reaching around $450,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $2,000 per month within the next five years. These projections assume continued economic stability and gradual population growth in the Sacramento area.
In summary, Tallac Village has demonstrated resilience in its housing market, with homeownership rates remaining relatively stable despite significant increases in average home prices. The rental market has seen steady growth in both occupancy and prices, particularly in recent years. The neighborhood's ability to maintain a balanced mix of owners and renters, even as prices rise, suggests a diverse and adaptable housing ecosystem. As we move forward, monitoring these trends will be crucial for understanding the evolving dynamics of Tallac Village's real estate market.
