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Zip Code 85635: Rising Home Values and Ownership Rates in Fort Huachuca's Vicinity
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 85635, located in Sierra Vista, Arizona, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a gradual increase in owner-occupied housing, coupled with fluctuating average home prices and rent costs.
The ownership percentage in zip code 85635 has shown a steady upward trend, rising from 52% in 2015 to 61% in 2022. This increase in homeownership coincides with a significant rise in average home prices. In 2016, the average home price was $152,399, which steadily climbed to $254,065 by 2022, representing a 66.7% increase over six years. This trend suggests a growing preference for homeownership in the area, despite rising property values.
The relationship between federal interest rates and homeownership rates in this zip code follows a well-established pattern. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, homeownership rates increased from 56% to 60%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Conversely, the percentage of renters in zip code 85635 has decreased from 48% in 2015 to 39% in 2022. Despite this decline in the renter population, average rent prices have remained relatively stable with some fluctuations. The average rent was $1,002 in 2015, peaked at $1,025 in 2018, and then decreased to $958 in 2022. This stability in rent prices, despite a decreasing renter population, could be attributed to factors such as local economic conditions or housing supply dynamics.
Looking at the most recent data, the average home price in zip code 85635 reached $255,283 in 2023 and further increased to $261,971 in 2024. This continued upward trend in home prices occurs alongside a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 85635 to continue their upward trajectory, potentially reaching around $300,000 by 2029. Rent prices, which have been more stable, may see a moderate increase, possibly approaching $1,100 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 85635 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The area has maintained relatively stable rent prices despite a decreasing renter population. The recent spike in interest rates, coupled with consistently rising home prices, may present new challenges for potential homebuyers in the coming years. These trends suggest a dynamic and evolving housing market in Sierra Vista, Arizona.
