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Zip Code 93274: Rising Home Values and Ownership Dynamics in Tulare, 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 93274, located in Tulare, California, has experienced significant changes in its housing market over the past decade. This area, known for its agricultural heritage and growing urban development, has seen fluctuations in homeownership rates, average home prices, and average rent prices that reflect broader economic trends and local market dynamics. The homeownership rate in zip code 93274 has shown a slight decline followed by a recent uptick. In 2013, the homeownership rate stood at 59%, gradually decreasing to 54% by 2017. However, from 2018 onwards, there has been a steady increase, reaching 58% in 2022. This trend correlates interestingly with average home prices in the area. In 2013, the average home price was $143,853, which steadily increased to $328,758 by 2022, representing a substantial 128.5% increase over this period. The initial decline in homeownership rates could be attributed to rising home prices outpacing income growth, making it more challenging for residents to afford homes. The recent uptick in homeownership, despite continued price increases, might suggest improved economic conditions or changing demographics in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 93274. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This coincided with a period of relatively stable homeownership rates and steadily increasing home prices. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), we observed a slight dip in homeownership rates. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with a rebound in homeownership rates, likely due to more affordable financing options.
Renter percentages and average rent prices in zip code 93274 have shown interesting trends. The renter-occupied percentage increased from 41% in 2013 to a peak of 46% in 2017, before gradually declining to 42% by 2022. Average rent prices have generally trended upward, rising from $1,104 in 2013 to $1,200 in 2022, an 8.7% increase. The population growth from 70,859 in 2013 to 78,556 in 2022 likely contributed to the upward pressure on rent prices. The recent decrease in renter percentages, despite rising rents, could indicate a shift towards homeownership or suggest that some renters are being priced out of the market.
In 2023 and 2024, the housing market in zip code 93274 continued to evolve. The average home price in 2023 was $331,254, showing a slight increase from 2022. In 2024, the average home price further rose to $340,354, indicating a continued upward trend in property values. Interestingly, federal interest rates also saw significant increases, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 93274 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and housing demand. However, the rate of increase may be moderated by the area's economic conditions and housing supply.
In summary, zip code 93274 has experienced a notable increase in average home prices and a modest rise in average rent prices over the past decade. Homeownership rates have recently rebounded after a period of decline, possibly influenced by changing interest rates and local economic factors. The interplay between federal interest rates, housing prices, and ownership trends highlights the complex dynamics of the local real estate market. As the area continues to grow, these trends will likely shape the future of housing in this Tulare zip code.
