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Zip Code 93662: Rising Home Values and Ownership Trends in Selma's Agricultural Hub
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 93662, located in Selma, California, has shown interesting dynamics in homeownership and housing market trends over the past decade. This area, covering 73.41 square miles, has experienced fluctuations in its population and housing market, reflecting broader economic shifts and local factors.
The homeownership rate in zip code 93662 has shown a gradual increase from 2013 to 2019, rising from 53% to 57%. This upward trend coincided with a significant increase in average home prices, which rose from $143,938 in 2013 to $232,721 in 2019, representing a 61.7% increase. However, the homeownership rate slightly decreased to 54% in 2020 and remained stable through 2022, despite continued growth in average home prices.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%, which likely contributed to the increase in homeownership during this time. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), we observed a stabilization in the homeownership rate. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) didn't immediately translate to increased homeownership, possibly due to economic uncertainties during the pandemic.
Renter percentages in zip code 93662 showed an inverse relationship to homeownership rates, decreasing from 47% in 2013 to 43% in 2019, before rising slightly to 46% in 2020 and remaining stable through 2022. Average rent prices fluctuated during this period, starting at $1,078 in 2013, dropping to $1,012 in 2015, and then rising to $1,112 in 2021. Interestingly, despite the increase in renter percentage from 2019 to 2020, average rent prices continued to rise, suggesting factors beyond supply and demand were influencing rental costs.
In 2023 and 2024, we've seen continued growth in average home prices in zip code 93662. The average home price reached $324,949 in 2023 and further increased to $341,071 in 2024, representing a 5% year-over-year increase. This growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, based on historical trends and current market conditions, we can predict continued growth in both average home prices and rent prices over the next five years. Average home prices in zip code 93662 could potentially reach around $400,000 by 2029, assuming a moderate annual growth rate of 3-4%. Average rent prices might increase to approximately $1,300-$1,400 per month, reflecting a similar growth trajectory.
In summary, zip code 93662 has demonstrated resilience in its housing market, with steady growth in average home prices despite fluctuations in homeownership rates. The area has maintained a relatively balanced mix of owners and renters, adapting to changing economic conditions. The recent spike in interest rates, coupled with rising home prices, may present challenges for potential homebuyers, potentially leading to increased demand for rentals in the coming years.
