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Zip Code 92655: Rising Home Values and Shifting Ownership Trends in Midway City, 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
Midway City, located in zip code 92655 in California, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen fluctuations in its ownership percentage and substantial increases in average home prices, reflecting the dynamic nature of its real estate market.
The ownership percentage in zip code 92655 has shown some variability over the years. In 2013, the homeownership rate stood at 47%. It reached its peak at 50% in 2016 but then declined to 46% by 2022. This fluctuation coincided with a remarkable increase in average home prices. In 2013, the average home price was $402,422, and it steadily rose to $892,058 by 2022, representing a 121.7% increase over this period. The most significant year-over-year increase occurred between 2020 and 2021, when average home prices jumped from $681,679 to $778,784, a 14.2% rise in just one year.
Federal interest rates have played a role in shaping homeownership trends in zip code 92655. From 2013 to 2016, when interest rates were historically low, ranging from 0.11% to 0.40%, the area saw its highest homeownership rates, peaking at 50% in 2016. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, the homeownership rate showed a slight decline, settling at 46% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 92655 has shown an inverse relationship to homeownership trends. In 2013, the renter percentage was 53%, and it remained relatively stable until 2020 when it increased to 57%. By 2022, it had settled back to 54%. Average rent prices have shown some volatility over this period. In 2013, the average rent was $1,558, peaking at $1,662 in 2015 before declining to $1,368 in 2022. This represents a 12.2% decrease in average rent from 2013 to 2022, despite the area's population declining from 7,200 in 2013 to 5,951 in 2022, a 17.3% decrease.
In 2023 and 2024, the housing market in zip code 92655 continued to evolve. The average home price in 2023 was $892,685, showing a minimal increase from 2022. However, in 2024, the average home price rose to $951,755, representing a 6.6% increase from 2023. This growth occurred despite the federal interest rate rising to 5.02% in 2023 and further to 5.33% in 2024, indicating a resilient housing market in the face of higher borrowing costs.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 92655 may continue to rise over the next five years, albeit at a potentially slower rate due to the higher interest rate environment. Average rent prices, which have shown some volatility, may stabilize or see modest increases as the housing market adjusts to changing economic conditions.
In summary, zip code 92655 has experienced a significant appreciation in average home values over the past decade, with some fluctuations in homeownership rates. The relationship between federal interest rates and homeownership has been evident, with lower rates generally corresponding to higher ownership percentages. The rental market has shown resilience despite population decline, and recent data suggests a continuing upward trend in home prices despite rising interest rates.
