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Zip Code 85296: Rising Home Values and Ownership Rates in Gilbert, Arizona's Suburban Growth
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 85296, located in Gilbert, Arizona, has experienced significant demographic and real estate changes over the past decade. This area has seen a steady increase in population density and homeownership rates, coupled with fluctuating average home prices and rent costs. The ownership percentage in zip code 85296 has shown a general upward trend from 2013 to 2022, coinciding with a substantial increase in average home prices. In 2013, the homeownership rate was 73%, and by 2018, it had risen to 78%. During this period, average home prices increased from $230,214 in 2013 to $317,961 in 2018, representing a 38% increase. However, the homeownership rate slightly decreased to 75% in 2022, while average home prices continued to rise, reaching $570,739 in the same year, marking a 148% increase from 2013.
Federal interest rates have played a role in homeownership trends in this zip code. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates increased from 73% to 76%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 77-78%. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight decrease in homeownership to 75-76%, possibly due to other economic factors at play.
Renter percentages in zip code 85296 have generally decreased as average rent prices increased. In 2013, 26% of residents were renters, with an average rent of $1,524. By 2022, the renter percentage had decreased to 25%, while the average rent had risen to $1,768, a 16% increase. The population growth from 39,339 in 2013 to 49,405 in 2022 may have contributed to the increased demand for rental properties, pushing up average rent prices despite a slight decrease in the proportion of renters.
In 2023, average home prices in zip code 85296 experienced a slight decline to $539,498, a 5.5% decrease from 2022. This trend continued into 2024, with average home prices rising slightly to $557,977, still below the 2022 peak. Interestingly, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, which may have influenced the housing market dynamics in this area.
Looking ahead, predictive models suggest that average home prices in zip code 85296 may continue to experience moderate growth over the next five years, potentially reaching around $650,000 by 2029. Average rent prices are also expected to increase, albeit at a slower rate, potentially reaching approximately $2,000 per month by 2029. These projections are based on historical trends and current market conditions.
In summary, zip code 85296 has demonstrated a strong trend towards homeownership, with increasing average home prices over the past decade. The area has seen population growth and rising property values, while maintaining a relatively stable renter population. The recent cooling in home prices, coupled with higher interest rates, suggests a potential shift in the local real estate market dynamics. As the area continues to develop, it will be crucial to monitor how these trends evolve and impact the local housing market.
