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Zip Code 92646: Rising Home Values and Stable Ownership in Huntington Beach's Coastal Paradise
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 92646 is located in Huntington Beach, California, a vibrant coastal city known for its long stretches of sandy beaches and excellent surfing conditions. This area has maintained a relatively stable homeownership rate over the years, with a slight trend towards increased renting. Average home prices have shown significant growth, while average rent prices have also increased steadily.
The homeownership rate in zip code 92646 has remained consistently high, hovering around 74% from 2013 to 2022. Despite this stability, average home prices have experienced substantial growth. In 2013, the average home price was $575,532, which increased to $1,188,414 by 2022, representing a remarkable 106.5% increase over nine years. This trend suggests that while homeownership rates remained steady, property values appreciated significantly, potentially benefiting existing homeowners but making entry into the market more challenging for new buyers.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with the period of stable homeownership at 74%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight decrease in homeownership to 73% in 2019. However, when interest rates dropped again in 2020 and 2021 (to 0.38% and 0.08% respectively), homeownership returned to 74%, illustrating the inverse relationship between interest rates and homeownership rates.
The renter population in zip code 92646 has shown a slight increase over time, from 25% in 2014 to 26% in 2022. This modest rise in renters coincides with a significant increase in average rent prices. In 2013, the average rent was $1,888, which rose to $2,536 by 2022, a 34.3% increase. The population has also grown during this period, from 55,624 in 2013 to 56,861 in 2022, potentially contributing to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023, the average home price in zip code 92646 reached $1,231,634, a 3.6% increase from 2022. This growth continued into 2024, with average home prices climbing to $1,319,715, representing a 7.2% increase from 2023. Concurrently, federal interest rates rose to 5.02% in 2023 and further to 5.33% in 2024, reaching levels not seen since 2007. These higher interest rates may impact future homeownership trends and property values.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and rent prices over the next five years. Average home prices could potentially reach $1,700,000 by 2029, assuming a moderate annual growth rate of 5-6%. Average rent prices might increase to around $3,000 per month by 2029, based on a projected annual growth rate of 3-4%.
In summary, zip code 92646 in Huntington Beach has demonstrated resilient homeownership rates despite significant increases in property values. The area has experienced substantial appreciation in both home prices and rent prices, influenced by factors such as population growth, economic conditions, and interest rate fluctuations. The recent rise in interest rates, coupled with the continued increase in property values, may present new challenges and opportunities for both homeowners and renters in this desirable coastal community.
