Zip Code 93720: Rising Home Values and Shifting Ownership Trends in Fresno, California
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Zip code 93720, located in Fresno, California, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a gradual transition from predominantly owner-occupied housing to a more balanced mix of owners and renters, accompanied by significant increases in both average home prices and average rent prices.
The homeownership rate in zip code 93720 has shown a general downward trend from 2013 to 2022. In 2013, 61% of housing units were owner-occupied, but this figure decreased to 57% by 2022. This decline coincided with a substantial increase in average home prices. In 2013, the average home price was $242,914, which rose dramatically to $473,471 by 2022, representing a 95% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates in the zip code remained relatively stable, hovering around 57-58%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates fluctuated between 56% and 58%. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) didn't immediately translate to higher homeownership rates, possibly due to the rapid increase in home prices during this period.
The renter population in zip code 93720 has grown from 39% in 2013 to 43% in 2022. This increase in renters corresponds with a rise in average rent prices. In 2013, the average rent was $1,521, which increased to $1,725 by 2022, a 13.4% increase. The population in the zip code has remained relatively stable, growing from 46,284 in 2013 to 47,577 in 2022, suggesting that the shift towards renting may be more influenced by housing affordability than by population growth.
In 2023 and 2024, the housing market in zip code 93720 showed signs of stabilization. The average home price in 2023 was $470,951, a slight decrease from 2022, but it rebounded to $486,808 in 2024. This occurs against a backdrop of significantly higher interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in zip code 93720 may continue to rise moderately over the next five years, potentially reaching around $550,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $2,000 per month within the same timeframe. However, these projections could be influenced by various factors, including economic conditions and local housing policies.
In summary, zip code 93720 has experienced a gradual shift towards a more balanced housing market, with decreasing homeownership rates and increasing rental occupancy. This trend has been accompanied by substantial growth in both average home prices and average rent prices. The interplay between federal interest rates, housing affordability, and demographic changes continues to shape the local real estate landscape, pointing towards a future where housing costs may continue to rise, potentially affecting the long-term composition of the area's residential population.
