Loading Content...
Zip Code 94044: Pacifica's Resilient Housing Market Sees Average Home Values Double Despite Economic Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 94044, located in Pacifica, California, is a coastal area known for its beautiful beaches and scenic views. This region has experienced notable shifts in homeownership rates and property values over the past decade, with average home prices and average rent prices showing significant upward trends.
The homeownership rate in zip code 94044 has remained relatively stable, fluctuating between 67% and 71% from 2013 to 2022. Despite this stability, average home prices have seen substantial growth. In 2013, the average home price was $612,529, which more than doubled to $1,361,275 by 2022. This represents a 122% increase over nine years. Interestingly, the peak in homeownership (71% in 2019) coincided with a period of steady home price appreciation, suggesting that rising property values did not deter homeownership in this area.
Federal interest rates have played a role in shaping homeownership trends in zip code 94044. From 2013 to 2016, when interest rates were at historic lows (below 0.5%), homeownership rates remained steady at 68%. As interest rates began to rise in 2017, reaching 1.83% by 2018, homeownership actually increased slightly to 69%. This trend continued into 2019 when homeownership peaked at 71%, despite interest rates reaching 2.16%. This suggests that other factors, such as local economic conditions or housing supply, may have had a stronger influence on homeownership in this area than interest rates alone.
Renter percentages in zip code 94044 have shown a slight decrease from 33% in 2014 to 32% in 2022. During this period, average rent prices experienced significant growth. In 2013, the average rent was $1,825, which increased to $2,633 by 2022, representing a 44% rise. The population of the zip code grew from 37,411 in 2013 to 37,556 in 2022, a modest 0.4% increase. This suggests that the rising rent prices were not primarily driven by population growth but may be attributed to other factors such as increased property values and limited housing supply.
In 2023 and 2024, the housing market in zip code 94044 experienced a slight correction. The average home price decreased from $1,361,275 in 2022 to $1,263,615 in 2023, a 7.2% decline. However, prices rebounded slightly to $1,276,752 in 2024, a 1% increase from 2023. This correction coincided with a significant rise in federal interest rates, which jumped from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024, potentially impacting home affordability and demand.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 94044 may continue to experience moderate growth, potentially reaching around $1.5 million by 2029. This projection assumes a return to the long-term appreciation trend, albeit at a slower pace than the rapid growth seen in the early 2020s. Average rent prices could follow a similar trajectory, potentially increasing to approximately $3,000 per month by 2029, reflecting ongoing demand for rental properties in this desirable coastal area.
In summary, zip code 94044 has demonstrated resilience in homeownership rates despite significant increases in property values. The area has seen substantial appreciation in both average home prices and average rent prices over the past decade, with only a brief correction in 2023. The interplay between federal interest rates, local economic factors, and housing supply has shaped these trends, resulting in a dynamic and evolving real estate market in this Pacifica, California neighborhood.
