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Zip Code 92782: Rising Home Values and Shifting Ownership Patterns in Tustin, 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 92782, located in Tustin, California, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a general trend of increasing property values and a slight shift towards renting, reflecting broader economic and demographic changes in the region.
The ownership percentage in zip code 92782 has shown a gradual decline from 66% in 2013 to 60% in 2022. During this same period, average home prices have experienced substantial growth. In 2013, the average home price was $613,182, which increased to $1,142,765 by 2022, representing an impressive 86.4% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, ranging from 66% to 62%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates declined more noticeably, reaching 59% in 2018 before slightly rebounding to 61% in 2019. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with a slight increase in homeownership to 61% in 2021, demonstrating how lower interest rates can make homeownership more accessible.
The percentage of renters in zip code 92782 has increased from 32% in 2013 to 40% in 2022, mirroring the decline in homeownership. Average rent prices have also shown an upward trend, rising from $2,057 in 2013 to $2,340 in 2022, an increase of 13.8%. However, this increase in rent prices has not been as steep as the rise in home prices. The population of the zip code has grown from 25,498 in 2013 to 30,359 in 2022, a 19% increase. This population growth, combined with rising home prices, may have contributed to the increased demand for rental properties.
In 2023 and 2024, the housing market in zip code 92782 continued to evolve. The average home price reached $1,169,426 in 2023 and further increased to $1,277,380 in 2024, representing a 9.2% year-over-year growth. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 92782 may continue to rise over the next five years, potentially reaching around $1.5 million by 2029. Average rent prices are also expected to increase, albeit at a more moderate pace, possibly approaching $2,700 per month by 2029. These projections are based on historical trends and current market conditions.
In summary, zip code 92782 has experienced a notable shift in its housing landscape over the past decade. The area has seen a decline in homeownership rates coupled with substantial increases in average home prices. Rental demand has grown, accompanied by moderate increases in average rent prices. The interplay between federal interest rates, population growth, and property values has significantly influenced these trends. As the area continues to evolve, it will be crucial to monitor how these factors shape the future of housing in this Tustin zip code.
