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Zip Code 85375: Steady Homeownership Amidst Rising Home Values in Sun City West's Retirement Community
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
Sun City West, located in zip code 85375 in Arizona, is a community known for its retirement-focused lifestyle. This area has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. The ownership percentage has remained relatively stable, while average home prices have shown a notable upward trend, and average rent prices have experienced moderate increases.
The homeownership rate in zip code 85375 has remained consistently high, ranging from 87% to 89% between 2013 and 2022. This stability in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $178,546, which steadily rose to $414,365 by 2022, representing a 132% increase over this period. The most dramatic rise occurred between 2020 and 2022, with average home prices jumping from $290,378 to $414,365, a 43% increase in just two years.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with the sustained high homeownership rates in the area, as lower rates typically make mortgages more affordable and encourage home buying. The slight variations in homeownership percentages during this time (between 87% and 89%) suggest that other factors, such as the area's retirement community status, may have a stronger influence on homeownership than interest rates alone.
The renter population in zip code 85375 has fluctuated between 10% and 13% from 2013 to 2022. Average rent prices have shown an overall upward trend during this period, albeit with some fluctuations. In 2013, the average rent was $1,347, which increased to $1,541 by 2021, representing a 14.4% rise. However, there was a slight decrease to $1,449 in 2022. The population of the area has remained relatively stable, with 27,185 residents in 2013 and 28,377 in 2022, suggesting that changes in rent prices are more likely influenced by market factors rather than significant population shifts.
Looking at the most recent data, the average home price in zip code 85375 decreased from $414,365 in 2022 to $399,011 in 2023, a 3.7% decline. This trend continued into 2024, with a further slight decrease to $396,874. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the stabilization and slight decline in home prices, as higher borrowing costs can dampen demand in the housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 85375 may experience a period of stabilization or modest growth, given the recent price corrections and higher interest rates. Average rent prices are likely to continue their gradual upward trend, potentially reaching around $1,600-$1,700 by 2029, assuming consistent economic conditions and demographic patterns in the area.
In summary, zip code 85375 has maintained a high and stable homeownership rate despite significant increases in average home prices over the past decade. The area has weathered substantial home price appreciation, particularly from 2020 to 2022, followed by a recent cooling trend. Rent prices have shown more moderate increases, with some fluctuations. The interplay between federal interest rates, homeownership rates, and housing prices demonstrates the complex dynamics of the local real estate market in this retirement-oriented community.
