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Zip Code 93660: San Joaquin's Rising Home Values Amidst Declining Ownership
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 93660, located in San Joaquin, California, presents an intriguing case study of housing trends over the past decade. This area has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic shifts and local market dynamics.
The ownership percentage in zip code 93660 has shown a general decline from 2013 to 2022, while average home prices have steadily increased. In 2013, the homeownership rate was 49%, with an average home price of $93,214. By 2022, the ownership rate had decreased to 41%, while the average home price had risen dramatically to $264,499. This inverse relationship suggests that rising home prices may have made homeownership less attainable for residents in this area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate in zip code 93660 declined from 49% to 40%. This counterintuitive trend might be explained by other local economic factors outweighing the potential benefits of low interest rates. As interest rates began to rise more sharply from 2017 (1.00%) to 2019 (2.16%), homeownership rates stabilized around 39%, possibly indicating a balance between affordability and market pressures.
Renter percentages and average rent prices in zip code 93660 have shown a general upward trend. The percentage of renters increased from 51% in 2013 to 59% in 2022. During this period, average rent prices rose from $693 in 2013 to $829 in 2022, with a peak of $925 in 2021. The population in the area fluctuated during this time, reaching a high of 4,706 in 2015 before declining to 4,010 in 2022. This population decrease, coupled with rising rent prices, suggests a tightening rental market despite fewer residents.
In 2023 and 2024, average home prices in zip code 93660 continued to rise, reaching $268,933 in 2023 and $271,810 in 2024. This represents a slower rate of increase compared to previous years, possibly influenced by the significant jump in federal interest rates to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be moderating home price growth and potentially affecting affordability for prospective buyers.
Looking ahead, predictive models suggest that average home prices in zip code 93660 may continue to increase over the next five years, but at a more modest pace due to the current high interest rate environment. Average rent prices are also expected to rise, driven by the area's high renter occupancy rate and the potential for continued population fluctuations. However, the rate of increase for both home prices and rents may slow if interest rates remain elevated, potentially leading to a more balanced housing market.
In summary, zip code 93660 has experienced a shift towards a renter-majority market over the past decade, with rising home prices potentially contributing to decreased homeownership rates. The area has seen substantial increases in both average home prices and rent prices, despite population fluctuations. The recent spike in interest rates may lead to a moderation in home price growth and could influence future homeownership trends in this California community.
