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Zip Code 92870: Rising Home Values and Shifting Ownership in Placentia, 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 92870, located in Placentia, California, has experienced significant changes in its housing market and demographics over the past decade. This area has witnessed a gradual shift in homeownership rates alongside substantial increases in both average home prices and average rent prices. The homeownership rate in zip code 92870 has shown a slight downward trend from 2013 to 2022. In 2013, 66% of housing units were owner-occupied, while by 2022, this figure had decreased to 63%. Conversely, the percentage of renter-occupied units increased from 33% in 2013 to 37% in 2022. This shift coincided with a significant increase in average home prices. In 2013, the average home price was $476,945, which rose dramatically to $972,333 by 2022, representing a 104% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code follows a generally inverse pattern. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate remained stable at 64%. However, as interest rates began to rise in 2022 to 1.68%, the homeownership rate slightly decreased to 63%. This trend aligns with the general economic principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 92870 has grown alongside increases in average rent prices. The percentage of renter-occupied units increased from 33% in 2013 to 37% in 2022. During this same period, average rent prices rose from $1,693 in 2013 to $2,160 in 2022, an increase of 28%. The population of the zip code also grew from 51,108 in 2013 to 53,043 in 2022, potentially contributing to the increased demand for rental properties.
In 2023 and 2024, the housing market in zip code 92870 continued to evolve. The average home price in 2023 was $982,279, showing a slight increase from 2022. In 2024, the average home price further rose to $1,051,132, indicating a continued upward trend in property values. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, predictive models suggest that average home prices in zip code 92870 may continue to rise over the next five years, potentially reaching or exceeding $1.2 million by 2029. Average rent prices are also expected to increase, potentially surpassing $2,500 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 92870 has experienced a gradual shift towards more renter-occupied units, accompanied by substantial increases in both average home prices and average rent prices. The area has shown resilience in its housing market, with property values continuing to rise despite fluctuations in interest rates. The ongoing population growth and the balance between homeownership and rental markets will likely continue to shape the housing landscape in this Placentia zip code in the coming years.
