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Zip Code 92342: Rising Home Values and Ownership Rates in Silver Lakes, California
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 92342, located in Silver Lakes, California, has experienced significant shifts in its housing market over the past decade. This area has seen notable changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 92342 has shown a strong upward trend, particularly in recent years. In 2013, the homeownership rate was 73%, and by 2022, it had increased dramatically to 87%. This substantial rise in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $145,911, and by 2022, it had more than doubled to $371,310. This parallel growth suggests a strong correlation between rising home values and increased homeownership in the area.
The relationship between federal interest rates and homeownership rates in zip code 92342 appears to follow the general trend of lower interest rates encouraging homeownership. For instance, from 2013 to 2016, when interest rates were consistently low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable around 70-72%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in the zip code actually increased, reaching 87% in 2022. This suggests that other local factors may have played a more significant role in driving homeownership than interest rates alone.
Renter percentages in zip code 92342 have shown an inverse relationship to homeownership rates, decreasing from 27% in 2013 to 13% in 2022. Interestingly, despite this decrease in the renter population, average rent prices have generally increased over the same period. In 2013, the average rent was $1,572, rising to $1,674 in 2022. This upward trend in rent prices, despite a decreasing renter population, could be attributed to factors such as overall housing market appreciation and potential improvements in rental property quality.
Looking at the most recent data, the average home price in zip code 92342 for 2023 was $371,717, showing a slight increase from 2022. In 2024, the average home price is reported at $378,383, indicating continued appreciation. The federal interest rate for 2024 is 5.33%, which is significantly higher than previous years and may impact future homeownership trends.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. Average rent prices may also continue to rise, but the rate of increase could be moderated by the strong preference for homeownership in the area.
In summary, zip code 92342 has experienced a significant shift towards homeownership, with rates increasing from 73% to 87% between 2013 and 2022. This trend has been accompanied by substantial growth in average home prices, more than doubling over the same period. Despite a decreasing renter population, average rent prices have generally increased. The area's housing market appears to be robust, with continued price appreciation expected in both the home ownership and rental sectors.
