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Zip Code 93638: Rising Home Values and Ownership Trends in Madera Acres, 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 93638, located in Madera Acres, California, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a gradual increase in owner-occupied housing, while average home prices have shown substantial growth. Simultaneously, the rental market has undergone fluctuations in both occupancy rates and average rent prices.
The homeownership rate in zip code 93638 has shown a modest but steady increase from 2013 to 2022. In 2013, the percentage of owner-occupied homes stood at 51%, and by 2022, it had risen to 53%. This upward trend in homeownership coincided with a remarkable surge in average home prices. In 2013, the average home price was $114,754, and by 2022, it had skyrocketed to $322,271, representing a staggering 181% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, the homeownership rate remained relatively stable at around 50-51%. As interest rates began to rise from 2017 to 2019, reaching 2.16% in 2019, there was a slight increase in homeownership to 53%. This suggests that despite rising interest rates, other factors such as local economic conditions and housing demand may have influenced the decision to purchase homes.
The rental market in zip code 93638 has experienced its own set of fluctuations. The percentage of renter-occupied housing decreased slightly from 48% in 2013 to 47% in 2022. Average rent prices, however, have shown overall growth with some volatility. In 2013, the average rent was $1,109, and it reached $1,116 in 2022, representing a modest 0.6% increase over the nine-year period. Notably, there were significant fluctuations in between, with average rent dropping to $1,025 in 2015 before rising again.
In 2023 and 2024, the housing market in zip code 93638 continued to evolve. The average home price in 2023 was $326,392, showing a slight increase from 2022. In 2024, the average home price further rose to $339,883, indicating continued growth in property values. Concurrently, federal interest rates increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends 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 93638 are likely to continue their upward trajectory, potentially reaching around $400,000 by 2029. This projection assumes a moderate annual growth rate of approximately 3-4%, which is more conservative than the rapid increases seen in recent years. Average rent prices may also see steady growth, potentially reaching $1,300-$1,400 per month by 2029, assuming a 3-4% annual increase.
In summary, zip code 93638 has demonstrated resilience and growth in its housing market. The area has seen a gradual increase in homeownership rates, accompanied by substantial appreciation in average home values. While the rental market has shown more modest growth, it remains a significant component of the local housing landscape. The interplay between federal interest rates, local economic conditions, and housing demand will continue to shape the future of this dynamic market.
