Loading Content...
Zip Code 93668: Tranquillity's Rising Home Values and Ownership Rates Amid Economic Shifts
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Tranquillity, located in zip code 93668 in California, is a small rural community that has experienced significant changes in its housing market 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 demographic shifts.
The homeownership rate in Tranquillity has shown an overall upward trend from 2013 to 2022. In 2013, the ownership rate was 53%, which increased to 65% by 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $105,494, which more than doubled to $282,481 by 2022. This trend suggests that despite rising home prices, more residents were able to purchase homes, possibly due to favorable economic conditions or changes in local housing policies.
Federal interest rates have played a significant role in shaping homeownership trends in Tranquillity. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.4%), homeownership rates increased from 53% to 59%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, even as interest rates began to rise from 2017 onwards, homeownership in Tranquillity continued to increase, reaching 65% in 2022 when the federal interest rate was 1.68%.
The renter percentage in Tranquillity has shown an inverse relationship to homeownership rates, decreasing from 47% in 2013 to 34% in 2022. Interestingly, average rent prices have remained relatively stable during this period, with only modest increases. In 2013, the average rent was $1,015, which increased to $1,054 by 2022, representing a mere 3.8% increase over nine years. This stability in rent prices, coupled with the decreasing renter population, suggests that the local rental market has remained competitive and affordable, despite the overall trend towards homeownership.
In 2023 and 2024, Tranquillity experienced a slight decrease in average home prices, with values of $274,155 and $279,604 respectively. This represents a minor correction from the peak of $282,481 in 2022. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in Tranquillity may continue to rise modestly over the next five years, potentially reaching around $300,000 by 2029. However, this growth rate is expected to be slower than the rapid increases seen in the 2010s. Average rent prices are forecasted to maintain their stability, with potential increases remaining in line with inflation, possibly reaching around $1,150 by 2029.
In summary, Tranquillity has experienced a significant shift towards homeownership over the past decade, accompanied by substantial increases in average home prices. Despite these rising prices, the community has maintained relatively stable and affordable rent prices. The recent slight decrease in home prices and increase in interest rates may signal a new phase in the local housing market, potentially moderating the rapid growth seen in previous years.
