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Zip Code 93271: Three Rivers's Housing Market Dynamics 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
Three Rivers, located in zip code 93271 in California, is a unique community nestled near Sequoia National Park. This area has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in Three Rivers has shown some fluctuation but maintained a generally high level from 2013 to 2022. In 2013, the homeownership rate stood at 79%, and it peaked at 83% in both 2017 and 2019. However, there has been a slight decline in recent years, with the rate dropping to 72% in 2022. This trend coincides with significant changes in average home prices. The average home price in the area increased from $244,090 in 2013 to $519,573 in 2022, representing a substantial 113% increase over this period.
The relationship between federal interest rates and homeownership rates in Three Rivers shows some correlation. As interest rates remained low from 2013 to 2016 (around 0.1-0.4%), homeownership rates increased from 79% to 81%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a noticeable decline in homeownership rates from 83% in 2017 to 72% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Three Rivers have shown an inverse relationship to homeownership rates, naturally. The renter percentage increased from 17% in 2019 to 28% in 2022. Interestingly, average rent prices have also seen an upward trend during this period. The average rent price rose from $1,029 in 2013 to $1,223 in 2022, an increase of about 19%. This increase in both renter percentages and rent prices could be attributed to the rising home prices, which may have priced some potential buyers out of the market, increasing demand for rentals.
Looking at the most recent data for 2023 and 2024, we see a slight decrease in average home prices. The average home price in Three Rivers was $514,333 in 2023 and $511,235 in 2024, showing a marginal decline from the 2022 peak. This cooling in the housing market coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024.
Applying predictive models to forecast 5-year trends, we anticipate a potential stabilization or slight decrease in average home prices due to the higher interest rates. However, given the area's desirable location near Sequoia National Park, prices are likely to remain relatively high. Rent prices may continue to increase moderately as more people opt for renting due to higher mortgage costs, but this increase is expected to be tempered by overall economic conditions and local income levels.
In summary, Three Rivers has experienced significant growth in average home prices over the past decade, with a recent slight cooling. Homeownership rates have generally remained high but have shown a decline in recent years as interest rates have increased. The rental market has seen moderate growth in both occupancy and prices. These trends reflect the complex interplay between local market conditions, broader economic factors, and the unique appeal of this California community.
