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Zip Code 92840: Rising Home Values and Shifting Ownership Patterns in Garden Grove, 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 92840, located in Garden Grove, California, has experienced significant changes in homeownership and housing prices over the past decade. This analysis examines the relationship between ownership rates, average home prices, and average rent prices in this suburban community. The homeownership rate in zip code 92840 has shown moderate fluctuations between 2013 and 2022. In 2013, 54% of residents owned their homes. This percentage decreased slightly to 52% in 2016 and remained stable until 2021. In 2022, there was a slight increase to 55%. During the same period, average home prices in the area have seen a substantial upward trend. In 2013, the average home price was $380,329. By 2022, this figure had more than doubled to $843,702, representing a 122% increase over nine years.
The relationship between federal interest rates and homeownership rates in zip code 92840 follows expected patterns. When interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates remained stable at 52-53%. The slight increase in homeownership to 55% in 2022 occurred despite a rise in interest rates to 1.68%, possibly due to other local economic factors or a lag in the market response to rate changes.
Renter percentages in zip code 92840 have shown a complementary trend to homeownership rates. The proportion of renters increased from 46% in 2013 to 48% in 2016 and remained stable until 2021, before decreasing slightly to 45% in 2022. Average rent prices have generally trended upward during this period. In 2013, the average rent was $1,600. It rose to $1,730 in 2018, an 8.1% increase. After a slight decrease to $1,652 in 2020, possibly due to the economic impact of the COVID-19 pandemic, average rent increased to $1,750 in 2021, before settling at $1,660 in 2022.
The most recent data shows that the average home price in zip code 92840 continued its upward trajectory, reaching $850,452 in 2023 and further climbing to $914,255 in 2024. This represents a 7.5% increase from 2023 to 2024. Federal interest rates also rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing demand in the area.
Predictive models forecast continued growth in both average home prices and average rent prices in zip code 92840 over the next 5 years. Based on historical data and current market conditions, average home prices could potentially reach or exceed $1.1 million by 2029. Average rent prices may also see steady increases, potentially surpassing $2,000 per month within the same timeframe. These projections are subject to various economic factors and market dynamics.
In conclusion, zip code 92840 has experienced substantial growth in housing values over the past decade, with homeownership rates remaining relatively stable. The area has shown resilience in its housing market, maintaining strong property values even in the face of economic challenges. The recent increase in homeownership, despite rising interest rates, suggests a robust local housing market. As we move forward, the interplay between rising home prices, increasing interest rates, and rental market dynamics will continue to shape the residential landscape of this Garden Grove neighborhood.
