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Zip Code 92507: Rising Home Values and Shifting Ownership Patterns in Riverside, 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 92507, located in Riverside, California, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown a dynamic real estate market with notable shifts in ownership patterns and housing costs. The homeownership rate in zip code 92507 has fluctuated over the years, with a general trend of decline followed by a recent uptick. In 2013, the homeownership rate stood at 35%, gradually decreasing to 33% by 2018. However, there has been a reversal in this trend, with the homeownership rate increasing to 36% in 2022. This change coincides with substantial growth in average home prices. The average home price in the area has seen a remarkable increase, rising from $187,227 in 2010 to $556,607 in 2022, representing a 197% increase over 12 years.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 92507. The period of historically low interest rates from 2010 to 2021, with rates ranging from 0.08% to 0.4%, coincided with the initial decline in homeownership rates. However, as interest rates began to rise in 2022 to 1.68%, we observed an increase in homeownership rates from 33% in 2018 to 36% in 2022. This suggests that while low interest rates typically encourage homeownership, other factors such as rapidly increasing home prices may have initially outweighed the benefits of low financing costs.
Renter percentages in zip code 92507 have shown an inverse relationship to homeownership rates, peaking at 66% from 2015 to 2019 before slightly decreasing to 64% in 2022. Average rent prices have steadily increased over the years, rising from $1,210 in 2013 to $1,366 in 2022, a 12.9% increase. The population in the zip code has also grown from 50,806 in 2010 to 56,373 in 2022, potentially contributing to increased demand for rental properties and subsequently higher rent prices.
In 2023 and 2024, we see a continuation of the upward trend in average home prices in zip code 92507. The average home price reached $562,807 in 2023 and further increased to $594,714 in 2024, representing a 6.8% year-over-year increase. This growth occurred despite a significant rise in federal interest rates, which climbed to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that average home prices in zip code 92507 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 population growth and the high cost of homeownership pushing more residents towards renting. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply catches up with demand.
In summary, zip code 92507 has experienced substantial growth in both average home prices and average rent prices over the past decade. The area has seen a recent uptick in homeownership rates despite rising home prices and interest rates. The interplay between federal interest rates, housing costs, and demographic changes continues to shape the real estate landscape in this Riverside neighborhood, presenting both opportunities and challenges for residents and investors alike.
