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Zip Code 93647: Rising Home Values and Shifting Ownership Trends in Orosi, 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 93647, located in Orosi, California, presents an intriguing blend of demographic and housing market trends. This area has experienced fluctuations in homeownership rates and significant changes in average home and rent prices over the years. The interplay between these factors offers valuable insights into the local real estate landscape.
The relationship between homeownership rates and average home prices in this zip code reveals some interesting patterns. In 2013, the homeownership rate was 48%, with an average home price of $110,978. By 2017, homeownership increased to 56%, coinciding with a rise in average home prices to $167,778. This trend suggests that rising property values may have encouraged more residents to invest in homeownership. However, by 2022, the homeownership rate slightly decreased to 54%, while average home prices continued to climb, reaching $270,372. This indicates that despite the growing property values, some residents may have found it increasingly challenging to enter the housing market.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 93647. In 2013, when interest rates were at a low 0.11%, the area saw a gradual increase in homeownership. This trend continued as interest rates remained relatively low, peaking at 58% homeownership in 2020 when interest rates dropped to 0.38%. The low interest rates likely made mortgages more affordable, encouraging more residents to purchase homes. However, as interest rates began to rise more sharply in recent years, reaching 1.68% in 2022, we observed a slight decline in homeownership to 54%, suggesting that higher borrowing costs may have deterred some potential buyers.
Renter percentages and average rent prices in zip code 93647 have shown their own distinct trends. In 2013, 52% of residents were renters, with an average rent of $699. By 2019, the renter percentage decreased slightly to 48%, while average rent increased significantly to $1,046. This suggests that rising rent prices may have motivated some renters to transition to homeownership. However, in 2022, we see a slight increase in renters to 46%, with average rent at $879. This could indicate that despite a decrease in average rent, other factors such as rising home prices or economic conditions may have kept some residents in the rental market.
Looking at the most recent data, in 2023, the average home price in zip code 93647 reached $277,938, with federal interest rates at 5.02%. In 2024, we see a further increase in average home prices to $287,246, while interest rates have risen to 5.33%. These figures indicate a continuing upward trend in both home prices and interest rates, which could potentially impact affordability and homeownership rates in the near future.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 93647 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $320,000 to $340,000 by 2029. For rent prices, we expect a moderate increase, potentially reaching an average of $950 to $1,100 per month in the same timeframe, assuming economic conditions and local factors remain relatively stable.
In summary, zip code 93647 has experienced notable shifts in homeownership rates, average home prices, and rent prices over the past decade. The area has seen a general trend towards increased property values, with homeownership rates fluctuating in response to market conditions and interest rates. The interplay between these factors suggests a dynamic housing market that responds to both local and broader economic influences. As we move forward, the balance between rising home prices, interest rates, and affordability will likely continue to shape the real estate landscape in this California community.
