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Zip Code 93656: Rising Home Values and Declining Ownership in Rural 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 93656, located in Riverdale, California, has experienced significant demographic and housing market shifts over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 93656 has shown a notable decline from 2013 to 2022. In 2013, 52% of residents were homeowners, but by 2022, this figure had dropped to 43%. This decrease in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $124,981, which rose dramatically to $304,922 by 2022, representing a 144% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained very low, hovering around 0.1% to 0.4%. During this period, homeownership rates in the zip code remained relatively stable, fluctuating between 48% and 52%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we saw a gradual decline in homeownership rates, dropping to 45% by 2020. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The rental market in zip code 93656 has shown interesting trends as well. As homeownership rates declined, the percentage of renters increased from 48% in 2013 to 57% in 2022. During this period, average rent prices experienced fluctuations. In 2013, the average rent was $824, which increased to $998 by 2018. However, there was a slight dip to $889 in 2019, followed by an increase to $1,000 in 2021, before settling at $931 in 2022. These fluctuations in rent prices, coupled with the increasing renter population, suggest a dynamic rental market responding to changing demand and local economic conditions.
Looking at more recent data, the average home price in zip code 93656 slightly decreased from $304,922 in 2022 to $302,038 in 2023, marking a minor correction in the housing market. However, the market shows signs of recovery in 2024, with average home prices rising to $313,341. This upward trend is occurring despite the significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. This resilience in home prices despite higher interest rates suggests strong underlying demand in the local housing market.
Applying predictive models to forecast 5-year trends, we anticipate a continued moderate increase in average home prices for zip code 93656. The steady rise observed from 2022 to 2024 is likely to persist, albeit at a potentially slower pace due to higher interest rates. For rent prices, we expect a gradual upward trend, influenced by the increasing renter population and overall housing demand in the area.
In summary, zip code 93656 has experienced a shift towards a renter-majority population, with homeownership rates declining as average home prices significantly increased. The rental market has shown resilience with fluctuating but generally increasing rent prices. Recent data indicates a robust housing market despite high interest rates, suggesting strong local demand. These trends point to a dynamic and evolving housing landscape in this California zip code.
