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Zip Code 93427: Rising Home Values and Stable Ownership in Buellton, 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 93427, located in Buellton, California, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area, known for its scenic beauty and proximity to the Santa Ynez Valley wine country, has seen fluctuations in its real estate market that reflect broader economic trends.
The homeownership rate in zip code 93427 has shown some variability over the years, with a notable peak in 2015 at 75% before settling to 65% in 2022. This trend coincides with changes in average home prices, which have seen substantial growth. In 2013, the average home price was $423,342, and by 2022, it had nearly doubled to $851,638, representing a 101% increase over nine years. This sharp rise in home prices may have contributed to the slight decrease in homeownership rates from their 2015 peak.
Federal interest rates have played a significant role in shaping homeownership trends in the area. For instance, the period from 2013 to 2015, when homeownership rates increased from 65% to 75%, coincided with relatively low interest rates ranging from 0.11% to 0.13%. These low rates likely made mortgages more affordable, encouraging home purchases. However, as interest rates began to rise more significantly from 2016 onwards, reaching 1.68% in 2022, we observe a corresponding decline in homeownership rates back to 65%.
Renter percentages in zip code 93427 have generally mirrored the inverse of homeownership rates, ranging from a low of 25% in 2015 to 35% in 2022. Average rent prices have shown considerable volatility. In 2013, the average rent was $1,551, which increased to a peak of $2,228 in 2017, before moderating to $1,878 in 2022. This represents a 21% overall increase from 2013 to 2022, despite the fluctuations. The population growth from 5,902 in 2013 to 5,844 in 2022, while relatively stable, may have contributed to the demand for rental properties and the overall increase in average rent prices.
In 2023 and 2024, the real estate market in zip code 93427 continued to evolve. The average home price reached $863,925 in 2023 and further increased to $913,585 in 2024, showing a sustained upward trend. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability in the area.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 93427 may continue to appreciate, albeit at a potentially slower rate due to higher interest rates. A conservative estimate might see average home prices reaching around $1,050,000 by 2029. Average rent prices, which have shown more volatility, could stabilize or see moderate increases, potentially reaching around $2,200 to $2,400 by 2029, assuming continued demand for rental properties in the area.
In summary, zip code 93427 has experienced significant growth in both average home prices and average rent prices over the past decade, with homeownership rates fluctuating in response to these changes and broader economic factors. The recent sharp increase in interest rates, coupled with consistently rising home prices, suggests a potentially challenging environment for new homebuyers in the coming years. However, the area's desirability and limited housing supply may continue to support property values and rental demand in this picturesque California community.
