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Zip Code 92586: Resilient Homeownership Amid Rising Home Values in Suburban Menifee
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 92586, located in Menifee, California, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a general trend of increasing average home prices and fluctuating homeownership rates, reflecting the dynamic nature of its real estate market.
The ownership percentage in zip code 92586 has shown notable fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 75%, but it decreased to 66% by 2017. However, there has been a recent uptick, with the rate reaching 76% in 2022. Interestingly, these changes in homeownership rates have occurred against a backdrop of consistently rising average home prices. The average home price in the area increased from $148,564 in 2013 to $410,857 in 2022, representing a substantial 176% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, the period from 2013 to 2017 saw relatively low interest rates (ranging from 0.11% to 1%), which coincided with a decline in homeownership from 75% to 66%. This trend is contrary to the general expectation that lower interest rates encourage homeownership. However, the recent increase in homeownership rates from 2017 to 2022 (66% to 76%) occurred despite rising interest rates (from 1% to 1.68%), suggesting that other local factors may have influenced homebuying decisions in this area.
Regarding rental trends, the percentage of renters in zip code 92586 increased from 25% in 2013 to a peak of 34% in 2017, before declining to 24% in 2022. Average rent prices have shown an overall upward trend, rising from $1,356 in 2013 to $1,383 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $1,551. These trends suggest a complex interplay between rental demand, housing availability, and overall population changes in the area.
In 2023 and 2024, the average home prices in zip code 92586 showed a slight decrease followed by a rebound. The average home price in 2023 was $404,704, a 1.5% decrease from 2022. However, in 2024, the price increased to $414,423, representing a 2.4% increase from 2023. This recent trend occurs in the context of significantly higher interest rates, with the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 92586 may continue to increase, albeit at a more moderate pace, potentially reaching around $450,000 to $475,000 by 2029. Average rent prices could also see a steady increase, potentially rising to approximately $1,600 to $1,700 per month in the same timeframe.
In summary, zip code 92586 has demonstrated resilience in its housing market, with rising average home prices despite fluctuations in homeownership rates. The recent trend of increasing homeownership, coupled with rising home prices and higher interest rates, suggests a strong local demand for housing. The rental market has also shown overall growth, albeit with some volatility. These trends indicate a dynamic and evolving real estate landscape in this Menifee zip code, likely influenced by a combination of local economic factors, population changes, and broader market forces.
