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Zip Code 85024: Phoenix Neighborhood Sees Substantial Home Value Appreciation and Ownership Shifts
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 85024, located in Phoenix, Arizona, has experienced significant changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates and substantial increases in both average home prices and average rent prices, reflecting the dynamic nature of Phoenix's real estate landscape. The homeownership rate in zip code 85024 has shown a general upward trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 66%, and it reached its peak at 70% in 2020. However, by 2022, it slightly decreased to 68%. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $204,289, and it rose dramatically to $504,702 by 2022, representing a 147% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. From 2013 to 2020, when interest rates were generally low (ranging from 0.11% to 2.16%), homeownership rates increased from 66% to 70%. This aligns with the principle that lower interest rates tend to encourage homeownership due to more affordable financing options. However, as interest rates began to rise sharply in 2022 (1.68%), we see a slight decline in homeownership to 68%.
Renter percentages in zip code 85024 have fluctuated inversely to homeownership rates, as expected. The renter percentage decreased from 33% in 2013 to 30% in 2020, before increasing slightly to 32% in 2022. Average rent prices have shown a steady upward trend, rising from $1,359 in 2013 to $1,534 in 2022, an increase of about 13%. This increase in rent prices, while significant, is less dramatic than the rise in home prices over the same period.
In 2023 and 2024, we see interesting developments in the housing market for zip code 85024. The average home price in 2023 was $484,961, showing a slight decrease from 2022. However, in 2024, the average home price has risen again to $502,872. This occurs against the backdrop of significantly higher interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be influencing buying decisions and contributing to the fluctuations in home prices.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in zip code 85024 may continue to rise over the next five years, but potentially at a slower rate than seen in the previous decade due to higher interest rates. Average rent prices are likely to continue their upward trend, possibly accelerating if homeownership becomes less attainable due to high home prices and interest rates.
In summary, zip code 85024 has experienced a significant increase in homeownership rates and average home prices from 2013 to 2022, with a slight reversal in recent years. Average rent prices have also increased, though less dramatically. The interplay between interest rates, home prices, and homeownership rates highlights the complex dynamics of the local real estate market. As we move forward, the area may see continued growth in both home and rent prices, albeit potentially at a more moderate pace.
