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Zip Code 85737: Rising Home Values and Stable Ownership in Oro Valley, Arizona
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 85737, located in Oro Valley, Arizona, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 85737 has remained relatively stable, with a slight overall decrease from 76% in 2013 to 74% in 2022. During this period, average home prices have shown a substantial increase. In 2013, the average home price was $263,602, which rose steadily to $488,654 by 2022, representing an impressive 85.4% increase over nine years. This upward trend in home prices, despite a relatively stable homeownership rate, suggests a robust and attractive housing market in the area.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates in zip code 85737 remained high, between 73% and 76%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 72% in 2018. However, the area maintained a relatively high homeownership rate even as interest rates fluctuated, indicating other strong factors supporting homeownership in this zip code.
Renter percentages in zip code 85737 have shown a slight increase over time, rising from 22% in 2013 to 26% in 2022. This trend coincided with an overall increase in average rent prices. In 2013, the average rent was $1,530, which increased to $1,716 by 2022, a 12.2% rise. The population growth in the area, from 20,111 in 2013 to 22,224 in 2022, likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
Looking at more recent data, the average home price in zip code 85737 continued to rise, reaching $491,372 in 2023 and $499,225 in 2024. This represents a modest 1.6% increase from 2023 to 2024, indicating a potential slowdown in the rapid price growth seen in previous years. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 85737 will continue to increase, albeit at a more moderate pace. Based on historical data and current market conditions, we project average home prices could reach approximately $550,000 to $575,000 by 2029. For average rent prices, the forecast suggests a continued upward trend, potentially reaching $1,900 to $2,000 per month by 2029, assuming consistent population growth and demand for rental properties.
In summary, zip code 85737 has demonstrated a strong and resilient housing market over the past decade. Despite fluctuations in federal interest rates, the area has maintained high homeownership rates while experiencing significant appreciation in average home values. The rental market has also shown steady growth, both in terms of renter percentages and average rent prices. As the area continues to develop, it will be crucial to monitor how these trends evolve, particularly in light of recent increases in interest rates and their potential impact on the housing market dynamics.
