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Zip Code 92128: Rising Home Values and Shifting Ownership Patterns in San Diego's Resilient Real Estate Market
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 92128, located in San Diego, California, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area, known for its suburban charm and proximity to the city's amenities, has seen a dynamic shift in its real estate landscape.
The homeownership rate in zip code 92128 has shown a gradual decline from 2013 to 2020, followed by a recent uptick. In 2013, 66% of residents owned their homes, but this figure decreased to 61% by 2020. However, there has been a reversal in this trend, with homeownership rising to 65% in 2022. Concurrently, average home prices have experienced a substantial increase. In 2013, the average home price was $459,257, which more than doubled to $966,484 by 2022, representing a 110% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates slightly declined from 66% to 64%. However, when interest rates began to rise more significantly from 2017 to 2019 (1.00% to 2.16%), homeownership rates continued to decrease, reaching 62% in 2019. The sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with a slight increase in homeownership to 63% by 2022, suggesting that lower interest rates may have encouraged some buyers to enter the market.
Renter percentages and average rent prices have shown a corresponding trend. As homeownership decreased from 2013 to 2020, the percentage of renters increased from 34% to 39%. Average rent prices rose steadily during this period, from $1,869 in 2013 to $2,418 in 2020, a 29% increase. The population growth from 48,541 in 2013 to 51,228 in 2020 likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023, the average home price in zip code 92128 slightly decreased to $959,787 from the previous year's peak. However, 2024 has seen a significant rebound, with average home prices reaching $1,036,110. This increase comes despite the Federal interest rate rising to 5.33% in 2024, indicating strong demand in the area despite higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 92128 will continue to rise, potentially reaching around $1,250,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $2,800 per month in the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 92128 has experienced a notable shift in its real estate dynamics over the past decade. The area has seen a substantial increase in average home prices, a recent rebound in homeownership rates, and steadily rising average rent prices. The interplay between interest rates, population growth, and housing demand has shaped these trends, with the latest data showing resilience in the local real estate market despite higher interest rates.
