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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Terra Vista, a neighborhood in Bakersfield, California, has demonstrated remarkable resilience in its housing market over the past decade. This residential area has experienced significant changes in population, homeownership rates, and housing prices, while maintaining a predominantly owner-occupied housing market. Average home prices have shown an overall upward trend, and average rent prices have fluctuated over time.
The homeownership rate in Terra Vista has remained relatively stable, ranging from 72% to 76% between 2013 and 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $243,529, which increased to $448,252 by 2022, representing an 84% growth over nine years. This substantial rise in home values did not significantly impact homeownership rates, suggesting a strong desire for homeownership in the neighborhood despite increasing prices.
Federal interest rates have played a role in homeownership trends in Terra Vista. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.09% to 0.4%), homeownership rates remained steady at 74-76%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight fluctuation in homeownership rates, but they generally remained within the 72-76% range. The stability in homeownership rates despite rising home prices and fluctuating interest rates indicates a resilient housing market in Terra Vista.
Renter percentages in Terra Vista have inversely mirrored homeownership rates, ranging from 24% to 28% between 2013 and 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $1,802, which increased to $1,885 in 2018, representing a 4.6% increase. However, rent prices then decreased to $1,674 in 2022, a 11.2% drop from the 2018 peak. The population of Terra Vista grew from 4,641 in 2013 to 5,040 in 2022, a 8.6% increase, which may have influenced the demand for rental properties and subsequent rent prices.
In 2023, the average home price in Terra Vista reached $452,472, a slight increase from 2022. This trend continued into 2024, with average home prices rising to $464,924. Concurrently, federal interest rates increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the neighborhood.
Looking ahead, based on the historical data and current trends, we can forecast the following 5-year trends for Terra Vista: 1. Average home prices are likely to continue their upward trajectory, potentially reaching around $550,000 to $600,000 by 2029. 2. Average rent prices may stabilize or show modest increases, potentially reaching $1,800 to $1,900 per month by 2029.
In summary, Terra Vista has maintained a strong homeownership market despite rising home prices and fluctuating interest rates. The neighborhood has shown resilience in its housing market, with stable homeownership rates and increasing property values. While rent prices have experienced some volatility, they have generally remained competitive. The coming years may bring challenges due to rising interest rates, but the neighborhood's historical trends suggest a robust and adaptable housing market.