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Zip Code 92701: Santa Ana's Resilient Housing Market and Rising Home Values
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 92701, located in Santa Ana, California, is a dynamic urban area covering 3.26 square miles. This densely populated region has experienced fluctuations in homeownership rates and significant increases in both average home prices and average rent over the past decade.
The homeownership rate in zip code 92701 has remained relatively stable, with slight variations between 24% and 27% from 2013 to 2022. Despite this stability, average home prices have shown a dramatic upward trend. In 2013, the average home price was $242,398, which increased steadily to $595,994 by 2022, representing a remarkable 146% increase over this period. This substantial rise in home prices, coupled with the relatively steady homeownership rate, suggests that while property values have appreciated significantly, it hasn't led to a corresponding increase in homeownership.
Federal interest rates have played a role in shaping homeownership trends in zip code 92701. From 2013 to 2016, when interest rates were exceptionally low (between 0.09% and 0.40%), the homeownership rate remained stable at around 24-25%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership to 26% by 2020. This suggests that despite rising interest rates, other factors such as local economic conditions or housing policies may have influenced homeownership decisions in this area.
Renter percentages in zip code 92701 have remained high, fluctuating between 73% and 76% from 2013 to 2022. The average rent prices have shown a general upward trend, albeit with some fluctuations. In 2013, the average rent was $1,259, which increased to $1,566 by 2021, representing a 24% increase. However, there was a slight decrease to $1,436 in 2022. The high renter percentage, combined with rising rent prices, indicates a strong rental market in this area, possibly influenced by factors such as job market dynamics, urban amenities, or limited housing supply.
In 2023, the average home price in zip code 92701 reached $610,412, continuing the upward trend. As of 2024, the average home price has further increased to $656,219. This represents a 7.5% increase from 2023 to 2024, indicating a robust real estate market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and average rent in zip code 92701 over the next five years. Average home prices could potentially reach around $800,000 by 2029, assuming a steady annual growth rate similar to recent years. Average rent prices might increase to approximately $1,700-$1,800 per month in the same timeframe, factoring in historical growth patterns and potential market adjustments.
In summary, zip code 92701 has experienced substantial growth in property values and rent prices over the past decade, with homeownership rates remaining relatively stable. The area continues to be dominated by renters, suggesting a dynamic urban rental market. The recent sharp increases in both home prices and interest rates indicate a changing landscape that may influence future housing trends in this Santa Ana neighborhood.
