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Zip Code 85250: Average Home Values and Ownership Trends in Scottsdale's Resilient Housing Market
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 85250, located in Scottsdale, Arizona, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen fluctuations in its ownership percentage and substantial increases in average home prices, reflecting the dynamic nature of Scottsdale's real estate market.
The relationship between homeownership rates and average home prices in zip code 85250 reveals interesting trends. In 2013, the area had a high homeownership rate of 76%, with an average home price of $243,505. As average home prices steadily increased, reaching $371,960 by 2019, the homeownership rate declined to 70%. This suggests that rising home prices may have made homeownership less accessible for some residents. However, by 2022, despite the average home price surging to $610,648, the homeownership rate rebounded to 74%, indicating a complex interplay between home values and ownership rates.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 85250. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates fluctuated between 68% and 76%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 70-72%. Interestingly, despite the sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates increased to 76% in 2020 and remained high at 73% in 2021, possibly due to increased savings and changing housing preferences during the pandemic.
Renter percentages and average rent prices in zip code 85250 have shown their own distinct patterns. In 2013, with 24% of residents renting, the average rent was $1,556. As the renter percentage increased to 32% by 2015, average rent actually decreased to $1,469, possibly due to increased rental supply. However, by 2020, as the renter percentage dropped back to 24%, average rent rose to $1,586, suggesting increased competition for fewer rental units. In 2022, with 26% of residents renting, the average rent remained relatively stable at $1,590, indicating a potential equilibrium in the rental market.
Looking at the most recent data, in 2023, the average home price in zip code 85250 experienced a slight decrease to $591,475 from the previous year's peak. However, 2024 has seen a rebound, with average home prices rising to $608,961. This increase comes despite the federal interest rate climbing to 5.33% in 2024, which typically would dampen home buying activity. This resilience in home prices suggests strong underlying demand in the Scottsdale real estate market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 85250 will continue to rise, albeit at a more moderate pace. Based on historical patterns and current economic indicators, we project average home prices could reach approximately $700,000 to $750,000 by 2029. For average rent prices, we expect a gradual increase, potentially reaching $1,800 to $1,900 per month in the same timeframe, assuming steady population growth and continued economic stability in the area.
In summary, zip code 85250 has demonstrated resilience in its housing market, with homeownership rates remaining robust despite significant increases in average home prices. The interplay between federal interest rates, homeownership, and rental markets has created a dynamic environment. While home prices have shown strong growth, the rental market has remained relatively stable. The area's ability to maintain high homeownership rates in the face of rising prices suggests a strong local economy and desirable living conditions, which are likely to support continued growth in both the ownership and rental sectors in the coming years.
