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Zip Code 93635: Los Banos' Rising Home Values and Stable Ownership in a Growing Central Valley City
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
Los Banos, California, zip code 93635, has experienced significant demographic and real estate changes over the past decade. This area has seen a steady increase in population, rising from 37,940 in 2010 to 48,088 in 2022, reflecting a growing community with evolving housing dynamics.
The homeownership rate in Los Banos has shown resilience, with slight fluctuations over the years. In 2013, the homeownership rate stood at 56%, dipping to 51% in 2015 before rebounding to 57% in 2022. This trend coincides with notable changes in average home prices. In 2013, the average home price was $159,379, which more than doubled to $467,897 by 2022, representing a substantial 193.6% increase over this period.
Federal interest rates have played a significant role in shaping homeownership trends in Los Banos. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. This favorable financing environment likely contributed to the gradual increase in homeownership rates from 51% in 2015 to 57% in 2022, despite rising home prices. The low interest rates made mortgage payments more affordable, encouraging homeownership even as property values appreciated rapidly.
Renter percentages in Los Banos have inversely mirrored homeownership rates, peaking at 49% in 2015 and settling at 43% in 2022. Average rent prices have shown a steady upward trend, increasing from $1,150 in 2013 to $1,326 in 2022, a 15.3% rise. This increase in rent prices, while significant, has been less dramatic than the surge in home prices, potentially influencing some residents to continue renting despite the overall trend towards homeownership.
In 2023 and 2024, the real estate market in Los Banos saw some interesting developments. The average home price in 2023 was $447,317, showing a slight decrease from the 2022 peak. However, in 2024, prices rebounded to $459,038. This comes amid significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and market dynamics.
Looking ahead, predictive models suggest a continued upward trend in both home prices and rent over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $550,000 by 2029. Average rent prices are expected to follow a similar trajectory, potentially rising to about $1,550 per month in the same timeframe. These projections account for historical trends, current market conditions, and anticipated economic factors.
In summary, Los Banos (93635) has demonstrated a robust housing market with increasing homeownership rates despite rapidly appreciating home values. The interplay between federal interest rates, home prices, and rent costs has shaped a dynamic real estate landscape. While homeownership has remained attractive, the significant increase in home prices may present challenges for new buyers entering the market in the coming years. The rental market, while also seeing increases, has grown at a more moderate pace, potentially providing an alternative for those priced out of homeownership.
