Loading Content...
Zip Code 85044: Rising Home Values and Ownership Rates in Phoenix's South Mountain Area
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 85044, located in Phoenix, Arizona, has experienced notable shifts in homeownership rates and property values over the past decade. This area has seen a trend of increasing homeownership and rising average home prices, while average rent prices have also climbed steadily.
The ownership percentage in zip code 85044 has shown a consistent upward trend, rising from 56% in 2013 to 63% in 2022. This increase in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $216,405, which more than doubled to $498,672 by 2022. This represents a substantial 130% increase over nine years. The relationship between ownership rates and home prices suggests that despite rising costs, more residents in this area have been able to transition into homeownership.
Federal interest rates have played a role in homeownership trends in zip code 85044. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership remained relatively stable around 55-56%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership actually increased from 58% to 60%. This suggests that other factors, such as local economic conditions or housing market dynamics, may have had a stronger influence on homeownership rates in this area than interest rates alone.
Renter percentages in zip code 85044 have inversely mirrored the homeownership trend, decreasing from 44% in 2013 to 37% in 2022. During this period, average rent prices increased from $1,321 in 2013 to $1,465 in 2022, a rise of about 11%. It's worth noting that the population in this zip code fluctuated over the years, reaching a peak of 43,126 in 2020 before declining to 39,475 in 2022. The combination of rising rent prices and decreasing renter percentages might indicate that some renters have transitioned to homeownership or moved to other areas.
In 2023 and 2024, the average home prices in zip code 85044 showed a slight decline followed by a modest increase. The average home price in 2023 was $481,317, a decrease from the 2022 peak. However, in 2024, prices rebounded slightly to $494,508. This recent trend coincides with higher interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially influencing buyer behavior and market dynamics.
Looking ahead, predictive models suggest that average home prices in zip code 85044 may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid increases seen in the early 2020s. Average rent prices are also expected to rise, but likely at a more gradual rate. These projections are based on historical trends and assume relatively stable economic conditions.
In summary, zip code 85044 has demonstrated a clear trend towards increased homeownership and higher property values over the past decade. The area has seen a significant appreciation in average home prices, a steady increase in average rent prices, and a consistent shift from renting to owning. Recent data shows a slight cooling in the housing market, possibly influenced by rising interest rates. Moving forward, the area is expected to maintain its appeal to homeowners, with continued but more moderate growth in both home prices and rental rates.
