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Zip Code 92841: Rising Home Values and Shifting Ownership 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 92841, located in Garden Grove, California, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a gradual shift in the balance between owners and renters, accompanied by substantial increases in both average home prices and average rent prices.
The ownership percentage in zip code 92841 has shown a slight downward trend from 2013 to 2022. In 2013, 58% of housing units were owner-occupied, but this figure decreased to 55% by 2022. Conversely, the average home prices in the area have seen a remarkable increase. In 2013, the average home price was $412,040, which rose steadily to $892,193 by 2022, representing a 116.5% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, interest rates remained very low, ranging from 0.11% to 0.40%. During this period, the homeownership rate in zip code 92841 decreased slightly from 58% to 54%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate continued to decline, reaching 52% in 2019. Interestingly, when interest rates dropped sharply in 2020 and 2021 (to 0.38% and 0.08% respectively), there was a slight rebound in homeownership to 55% in 2020 and 54% in 2021.
The percentage of renters in zip code 92841 has generally increased from 42% in 2013 to 45% in 2022, with some fluctuations in between. During this same period, average rent prices have also risen. In 2013, the average rent was $1,562, which increased to $1,670 by 2022, representing a 6.9% increase. The population in the zip code has also grown from 34,641 in 2013 to 36,758 in 2022, potentially contributing to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, the housing market in zip code 92841 has continued to evolve. The average home price in 2023 was $896,225, showing a slight increase from 2022. In 2024, the average home price has further risen to $960,289, indicating a continued upward trend in property values. Notably, interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics.
Looking ahead, predictive models suggest that average home prices in zip code 92841 may continue to rise over the next five years, potentially reaching or exceeding $1.1 million by 2029. Average rent prices are also expected to increase, possibly surpassing $1,900 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 92841 has experienced a gradual shift towards a higher percentage of renters, coupled with substantial increases in both average home prices and average rent prices. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with lower interest rates generally supporting homeownership. The continued rise in property values and rent prices, along with the recent spike in interest rates, may present challenges for both potential homebuyers and renters in the coming years.
