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Zip Code 92122: Doubling Home Values and Shifting Ownership Near UCSD
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 92122, located in San Diego, California, has experienced significant changes in its real estate landscape over the past decade. This area, known for its proximity to the University of California San Diego and the bustling technology hub of Sorrento Valley, has seen notable shifts in homeownership rates, average home prices, and average rent prices.
The ownership percentage in zip code 92122 has remained relatively stable, with a slight increase from 31% in 2015 to 34% in 2022. During this same period, average home prices have shown a remarkable upward trend. In 2015, the average home price was $551,774, which steadily increased to $1,063,711 by 2022, representing a substantial 92.8% increase over seven years. This significant rise in average home prices, coupled with only a modest increase in homeownership rates, suggests that while property values have appreciated considerably, it has not translated into a substantial shift towards homeownership in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 92122. From 2015 to 2020, interest rates remained relatively low, ranging from 0.13% to 2.16%. This period coincided with a steady increase in average home prices, as lower interest rates generally make mortgages more affordable. However, the homeownership rate remained relatively stable during this time, indicating that other factors, such as high home prices, may have counteracted the potential positive effect of low interest rates on homeownership.
Renter percentages in zip code 92122 have shown a slight decrease, moving from 68% in 2015 to 66% in 2022. Despite this minor shift, the area remains predominantly renter-occupied. Average rent prices have increased substantially during this period, rising from $2,029 in 2015 to $2,299 in 2022, a 13.3% increase. This upward trend in rent prices, coupled with the high percentage of renters, suggests a strong demand for rental properties in the area, possibly driven by the local student population and young professionals working in nearby tech industries.
In 2023 and 2024, the real estate market in zip code 92122 continued to evolve. The average home price in 2023 was $1,063,919, showing a slight increase from 2022. In 2024, the average home price further rose to $1,124,522, indicating a continued upward trend in property values. Concurrently, federal interest rates increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying decisions in the area.
Looking ahead, predictive models suggest that average home prices in zip code 92122 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by the area's persistent high demand for rental properties and the overall rising cost of living in San Diego.
In summary, zip code 92122 has experienced substantial growth in both average home prices and average rent prices over the past decade. While homeownership rates have slightly increased, the area remains predominantly renter-occupied. The interplay between rising property values, increasing rent prices, and fluctuating interest rates will likely continue to shape the real estate dynamics in this San Diego neighborhood in the coming years.
