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Zip Code 93654: Average Home Values and Ownership Trends in Reedley, 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 93654, located in Reedley, California, has experienced significant changes in homeownership rates and housing prices over the past decade. This area, known for its agricultural heritage and small-town charm, has seen a gradual shift in its housing market dynamics, with notable fluctuations in ownership percentages, average home prices, and average rent prices.
The homeownership rate in zip code 93654 has shown a general upward trend from 2013 to 2019, before experiencing a decline in recent years. In 2013, the ownership rate stood at 60%, gradually increasing to a peak of 64% in 2019. However, this trend reversed, dropping to 57% by 2022. Concurrently, average home prices have demonstrated a consistent upward trajectory. In 2013, the average home price was $159,774, which steadily rose to $343,050 by 2022, representing a substantial 114.7% increase over this period.
The relationship between federal interest rates and homeownership rates in this area shows an interesting pattern. From 2013 to 2019, when interest rates were generally low (ranging from 0.11% to 2.16%), homeownership rates increased. This aligns with the well-established trend that lower interest rates tend to encourage homeownership due to more affordable financing options. However, despite interest rates remaining low in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates began to decline, suggesting that other factors were influencing the housing market in this zip code.
Renter percentages and average rent prices in zip code 93654 have shown an inverse relationship to homeownership trends. As homeownership rates increased from 2013 to 2019, the percentage of renters decreased from 40% to 36%. Average rent prices, however, did not follow a consistent pattern. They rose from $938 in 2013 to $1,023 in 2017, before fluctuating and settling at $975 in 2022. The population of the area remained relatively stable during this period, ranging from around 32,000 to 34,000 residents, which likely contributed to the moderate changes in rental demand and pricing.
In 2023 and 2024, the housing market in zip code 93654 continued to evolve. The average home price reached $346,443 in 2023 and further increased to $359,273 in 2024, representing a 3.7% year-over-year growth. This increase occurred despite the Federal Reserve raising interest rates to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to cool housing demand.
Looking ahead, based on the observed trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 93654 are likely to continue their upward trajectory, albeit at a potentially slower pace due to higher interest rates. We might expect average home prices to reach approximately $400,000 to $425,000 by 2029. Average rent prices, which have shown more volatility, could stabilize or see modest increases, potentially reaching $1,050 to $1,100 per month by 2029.
In summary, zip code 93654 has witnessed a complex interplay of homeownership rates, housing prices, and rental market dynamics over the past decade. The area has seen a general trend of increasing home values, with recent years showing resilience even in the face of rising interest rates. The shift from a steady increase in homeownership to a recent decline, coupled with the consistent rise in home prices, suggests a changing landscape in the local real estate market that warrants continued observation.
