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Zip Code 93591: Rising Home Values and Ownership Trends in Palmdale's Resilient Housing Market
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 93591, located in Palmdale, California, has experienced dynamic shifts in homeownership rates and property values over the past decade. This area, spanning 86.46 square miles, has seen notable fluctuations in its population and housing market, reflecting broader economic trends and local developments.
The ownership percentage in this zip code has shown a general upward trend, rising from 67% in 2013 to 66% in 2022, with some fluctuations in between. Concurrently, average home prices have experienced significant growth. In 2012, the average home price was $79,922, which steadily increased to $379,865 by 2022, representing a remarkable 375% increase over a decade. This substantial appreciation in home values likely contributed to the relatively stable homeownership rates, as existing homeowners benefited from increased equity.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 93591. The period from 2012 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%. During this time, homeownership rates remained relatively stable, hovering around 67%. As interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), there was a notable increase in homeownership, reaching 71% in 2019. This suggests that rising interest rates may have motivated potential buyers to enter the market before rates climbed further.
Renter percentages in zip code 93591 have generally mirrored the inverse of homeownership rates, decreasing from 33% in 2013 to 34% in 2022. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $1,175, which increased to $1,218 by 2022, representing a 3.7% rise. The population in the zip code has also grown during this period, from 7,798 in 2013 to 8,323 in 2022, potentially contributing to the demand for rental properties and the modest increase in rent prices.
In 2023 and 2024, the housing market in zip code 93591 showed signs of stabilization. The average home price slightly decreased to $375,207 in 2023 but rebounded to $388,569 in 2024. This occurred against the backdrop of significantly higher interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher rates may have tempered home price growth and could influence future homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in zip code 93591 may continue to rise moderately over the next five years, potentially reaching around $450,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,400 by 2029. These projections are based on historical trends and current market conditions, assuming relatively stable economic factors.
In summary, zip code 93591 has demonstrated resilience in its housing market, with steady growth in homeownership rates and substantial appreciation in home values over the past decade. The interplay between federal interest rates, population growth, and local economic factors has shaped these trends. As the area continues to evolve, it will be important to monitor how these dynamics influence future housing affordability and accessibility for both homeowners and renters in this Palmdale neighborhood.
