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Zip Code 92585: Rising Home Values and Ownership Rates in Menifee, 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 92585, located in Menifee, California, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown a strong trend towards increasing homeownership and rising property values, coupled with fluctuations in the rental market.
The ownership percentage in zip code 92585 has seen a notable increase from 75% in 2013 to 86% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $226,291, which steadily increased to $585,853 by 2022, representing a remarkable 159% increase over nine years. This correlation suggests that despite rising home prices, more residents in the area have been able to transition into homeownership.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates increased from 75% to 85%. This aligns with the general trend that lower interest rates encourage homeownership due to more affordable financing options. However, it's noteworthy that even as interest rates began to rise more sharply in 2022 to 1.68%, the homeownership rate in the area remained stable at 86%, indicating other factors may be influencing the local housing market.
Renter percentages in zip code 92585 have decreased from 25% in 2013 to 14% in 2022, inversely mirroring the rise in homeownership. Despite this decrease in renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $1,642, which increased to $1,830 by 2022, representing an 11.4% increase. This rise in rent prices, coupled with a decreasing renter population, suggests a tightening rental market, possibly due to limited rental inventory as more properties transition to owner-occupied status.
Looking at the most recent data, the average home price in zip code 92585 decreased slightly to $566,654 in 2023 but is projected to rise again to $582,850 in 2024. This slight dip and subsequent rise occur against the backdrop of significantly higher interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be tempering home price growth, but the market appears to remain resilient.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 92585 will continue to rise, albeit at a more moderate pace than seen in the past decade. We expect average home prices to reach approximately $650,000 by 2029. Average rent prices are also projected to increase, potentially reaching around $2,100 by 2029, assuming the current trends in population growth and housing demand continue.
In summary, zip code 92585 has demonstrated a strong shift towards homeownership, with significant increases in both ownership rates and average home prices. The rental market, while shrinking in terms of population, has seen steady increases in average rent prices. Despite recent increases in interest rates, the local housing market appears to remain robust, with projections indicating continued growth in both home values and rental prices over the next five years.
