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Zip Code 94505: Discovery Bay's Rising Home Values and Ownership Rates
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 94505, located in Discovery Bay, California, has experienced notable shifts in homeownership rates and property values over the past decade. This area has seen a significant increase in owner-occupied housing, coupled with substantial growth in average home prices and average rent costs.
The trend in homeownership rates in zip code 94505 has shown a consistent upward trajectory. In 2013, the percentage of owner-occupied homes stood at 83%. This figure has steadily increased over the years, reaching 89% by 2022. This rise in homeownership coincides with a remarkable increase in average home prices. In 2013, the average home price was $403,742, which more than doubled to $853,984 by 2022. This correlation suggests that as property values increased, more residents were inclined to invest in homeownership, possibly viewing real estate as a lucrative long-term investment.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite fluctuations in interest rates, the area has maintained a strong trend towards homeownership. For instance, when interest rates were at a low of 0.08% in 2021, the homeownership rate was 87%. Interestingly, even as interest rates rose to 1.68% in 2022, the homeownership rate continued to climb to 89%. This suggests that factors beyond interest rates, such as the desirability of the area or local economic conditions, may have played a significant role in driving homeownership.
Conversely, the percentage of renters in zip code 94505 has decreased over time, from 17% in 2013 to 11% in 2022. Despite this decline in the renter population, average rent prices have shown a steady increase. The average rent rose from $2,124 in 2013 to $2,626 in 2022, an increase of approximately 23.6% over nine years. This upward trend in rent prices, despite a shrinking renter population, could be attributed to the overall increase in property values and the limited availability of rental properties in an area dominated by homeowners.
Looking at the most recent data, the average home price in zip code 94505 stood at $809,156 in 2023, with a slight increase to $818,275 in 2024. This represents a moderation in the rapid price growth seen in previous years. Notably, interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and property values in the area.
Applying predictive models to forecast 5-year trends, we anticipate a continued but more moderate increase in average home prices, potentially reaching around $900,000 by 2029. Average rent prices are expected to follow a similar pattern, potentially approaching $3,000 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 94505 has demonstrated a strong trend towards homeownership, with a corresponding increase in property values. The area has maintained high owner-occupancy rates despite fluctuations in interest rates, suggesting a robust local real estate market. While the renter population has decreased, rent prices have continued to rise, reflecting the overall increase in property values. The recent moderation in home price growth and rise in interest rates may signal a shift in market dynamics, potentially affecting future trends in homeownership and property values in this California community.
