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Zip Code 93555: Stable Homeownership Amidst Rising Values in Ridgecrest, 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 93555, located in Ridgecrest, California, is a relatively stable area with interesting demographic and housing trends. Over the past decade, this region has experienced fluctuations in homeownership rates and notable changes in average home and rent prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 93555 has remained relatively stable, ranging from 62% to 65% between 2013 and 2022. During this period, average home prices have shown a significant upward trend. In 2013, the average home price was $148,476, which steadily increased to $261,686 by 2022, representing a substantial 76% increase over nine years. This upward trajectory in home prices did not significantly impact homeownership rates, suggesting a resilient local housing market where residents maintained their ability to purchase homes despite rising prices.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.40%, coinciding with a period of stable homeownership rates around 63%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates showed a slight increase to 64%, possibly due to residents locking in purchases before further rate increases. The dramatic drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) didn't lead to a surge in homeownership, which remained steady at 63%, possibly due to economic uncertainties during the COVID-19 pandemic.
Renter percentages in zip code 93555 have mirrored homeownership rates, remaining relatively stable between 35% and 38% from 2013 to 2022. Average rent prices have shown more volatility compared to home prices. In 2013, the average rent was $1,056, which increased to $1,089 by 2016. After some fluctuations, it reached $1,193 in 2021, the highest point in the dataset, before decreasing to $1,072 in 2022. This represents a modest overall increase of about 1.5% from 2013 to 2022. The population grew from 35,522 in 2013 to 36,856 in 2022, a 3.8% increase, which may have contributed to the upward pressure on rent prices.
In 2023, the average home price in zip code 93555 slightly decreased to $260,346 from the previous year's $261,686. However, 2024 saw a rebound with the average home price rising to $267,241. This recent uptick occurs despite high federal interest rates of 5.02% in 2023 and 5.33% in 2024, suggesting a robust local housing market that continues to appreciate even in a high-interest-rate environment.
Looking ahead, based on historical trends and current market conditions, we can project potential 5-year trends for average home and rent prices in zip code 93555. Average home prices are likely to continue their upward trajectory, potentially reaching around $300,000 by 2029, assuming a moderate annual growth rate of 2-3%. Average rent prices may also continue to rise, albeit at a slower pace, potentially reaching $1,200-$1,250 per month by 2029, factoring in historical volatility and local economic conditions.
In summary, zip code 93555 has demonstrated a resilient housing market with steadily increasing average home prices and relatively stable homeownership rates. Rent prices have shown more volatility but have generally trended upward. The area's ability to maintain steady homeownership rates despite rising home prices and fluctuating interest rates suggests a strong local economy and housing demand. The recent home price increases in a high-interest-rate environment further underscore the market's strength, pointing towards continued growth in both the ownership and rental sectors in the coming years.
