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Zip Code 94133: Fluctuating Home Values and Ownership Rates in San Francisco's Urban Core
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 94133 is located in San Francisco, California, covering an area of 0.74 square miles. This densely populated urban area has experienced fluctuations in homeownership rates and significant changes in average home and rent prices over the past decade. The neighborhood has maintained a predominantly renter-occupied housing market, with homeownership rates ranging from 15% to 20% between 2013 and 2022.
The relationship between homeownership rates and average home prices in zip code 94133 shows some interesting trends. In 2013, when the homeownership rate was 17%, the average home price was $1,055,093. As average home prices increased to $1,461,709 in 2018, the homeownership rate rose to 20%. However, by 2022, despite average home prices reaching $1,452,365, the homeownership rate decreased to 17%. This suggests that rising home prices may have initially encouraged homeownership, but sustained high prices potentially made it more challenging for residents to purchase homes in recent years.
Federal interest rates have played a role in homeownership trends in zip code 94133. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates increased from 17% to 18%. As interest rates began to rise more significantly from 2017 to 2019 (1.00% to 2.16%), homeownership rates fluctuated between 18% and 20%. The sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08%, respectively) coincided with a decrease in homeownership to 15% in 2020, followed by a slight increase to 16% in 2021. This suggests that while low interest rates generally encourage homeownership, other factors such as high home prices in this area may have counteracted this effect.
Renter percentages and average rent prices in zip code 94133 have shown a strong correlation. In 2013, with 83% of housing units being renter-occupied, the average rent was $1,508. As the renter percentage remained relatively stable, average rent prices increased to $1,690 in 2017. Interestingly, in 2020, when the renter percentage peaked at 85%, the average rent decreased slightly to $1,585, possibly due to the impact of the COVID-19 pandemic. By 2022, with 83% of units renter-occupied, the average rent had risen to $1,577. The high renter percentage throughout this period reflects the tight housing market in San Francisco and the challenges of homeownership in this expensive urban area.
In 2023, the average home price in zip code 94133 decreased to $1,272,350, representing a significant drop from the previous year. This decline continued into 2024, with average home prices further decreasing to $1,240,286. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis. These higher interest rates likely contributed to the cooling of the housing market and the decrease in average home prices.
Looking ahead, based on recent trends and current market conditions, we can project some potential scenarios for the next five years. Average home prices in zip code 94133 may continue to experience a slight decline or stabilization in the short term due to high interest rates. However, given the area's desirability and limited housing supply, prices are likely to rebound and show moderate growth in the medium term. Average rent prices may see a slower rate of increase compared to previous years, potentially stabilizing around the $1,600 to $1,800 range, as the market adjusts to economic conditions and housing demand.
In summary, zip code 94133 in San Francisco has maintained a predominantly renter-occupied housing market with high average home and rent prices. The area has shown resilience in its property values despite recent market challenges. The interplay between federal interest rates, homeownership rates, and housing prices demonstrates the complex dynamics of this urban real estate market. As the area adapts to recent changes in interest rates and home prices, it will likely continue to be a highly sought-after location with a competitive housing market.
