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Zip Code 85306: Resilient Housing Market with Rising Home Values and Ownership Rates
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 85306, located in Glendale, Arizona, presents an interesting case study of housing trends over the past decade. This suburban area has experienced notable shifts in homeownership rates and property values, reflecting broader economic changes in the region.
The homeownership rate in zip code 85306 has shown a gradual increase over the years, rising from 58% in 2017 to 64% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2013, the average home price in this area was $149,512, which steadily climbed to $426,602 by 2022, representing a substantial 185% increase over nine years. This correlation suggests that despite rising home prices, more residents have been able to enter the housing market, possibly due to factors such as increased local economic opportunities or favorable mortgage conditions.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 85306. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained stable at 60%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed an interesting trend: homeownership rates actually increased from 58% to 64%. This suggests that other local factors, such as job growth or demographic changes, may have outweighed the impact of rising interest rates on homebuying decisions in this area.
Renter percentages in zip code 85306 have inversely mirrored the homeownership trends, decreasing from 42% in 2017 to 36% in 2022. Interestingly, this decrease in the renter population has occurred alongside an increase in average rent prices. The average rent rose from $1,287 in 2017 to $1,422 in 2022, a 10.5% increase. This trend suggests that while fewer residents are renting, those who do are paying higher prices, possibly due to improved rental property quality or increased demand for the remaining rental units.
Looking at the most recent data, the average home price in zip code 85306 for 2023 was $407,690, showing a slight decrease from the 2022 peak. In 2024, the average home price has rebounded to $420,008. This recent fluctuation occurs against the backdrop of significantly higher interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher rates may be tempering home price growth and could influence future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 85306 will continue to rise, albeit at a more moderate pace than seen in the early 2020s. By 2029, average home prices could reach approximately $480,000 to $500,000, assuming steady economic growth and barring any major economic disruptions. Average rent prices are also expected to increase, potentially reaching around $1,600 to $1,700 per month by 2029, reflecting ongoing demand for rental properties in the area.
In summary, zip code 85306 has demonstrated resilience in its housing market, with increasing homeownership rates despite rising home prices. The area has seen substantial property value appreciation, particularly from 2013 to 2022. While renter percentages have decreased, average rent prices have continued to climb, indicating a competitive rental market. Recent data shows a slight cooling in home prices, possibly influenced by higher interest rates, but the overall trend remains positive. These patterns suggest a dynamic and evolving housing market in this Glendale, Arizona neighborhood.
