Zip Code 94547: Rising Home Values and High Ownership Rates in Hercules, California
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Zip code 94547, located in Hercules, California, has shown interesting trends in homeownership and housing prices over the past decade. This area has maintained a high rate of owner-occupied housing, consistently above 78%, while experiencing significant changes in average home and rent prices.
The ownership percentage in zip code 94547 has remained relatively stable, fluctuating between 78% and 83% from 2013 to 2022. Interestingly, this stability in homeownership occurred despite substantial increases in average home prices. In 2016, the average home price was $507,213, which steadily rose to $827,364 by 2022, representing a 63% increase over six years. This suggests that despite rising home values, residents in this area have been able to maintain their status as homeowners.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of stable homeownership rates around 79-80%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership, reaching 82% in 2019. This could indicate that residents were motivated to purchase homes before interest rates potentially increased further.
Renter percentages in zip code 94547 have remained relatively low, ranging from 17% to 22% between 2013 and 2022. Despite the low percentage of renters, average rent prices have seen a significant upward trend. In 2013, the average rent was $1,790, which increased to $2,683 by 2022, a 50% rise over nine years. This substantial increase in rent prices occurred even as the renter population remained relatively small, suggesting a competitive rental market in the area.
In 2023 and 2024, we see a slight dip in average home prices followed by a recovery. The average home price in 2023 was $797,374, showing a 3.6% decrease from 2022. However, in 2024, prices rebounded to $822,116, a 3.1% increase from 2023. Notably, federal interest rates have risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to the initial dip in home prices in 2023, but the market appears to be adapting as prices recovered in 2024.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in zip code 94547 may continue to rise moderately over the next five years, potentially reaching around $900,000 by 2029. Average rent prices are also likely to continue their upward trajectory, potentially exceeding $3,000 per month within the same timeframe. However, these increases may be tempered by the current high interest rate environment, which could slow the pace of price growth compared to previous years.
In summary, zip code 94547 has demonstrated resilience in maintaining high homeownership rates despite significant increases in both home prices and rent. The area has seen substantial property value appreciation, with average home prices rising by over 60% from 2016 to 2022. While there was a brief dip in 2023, prices have already shown signs of recovery in 2024. The rental market, though smaller, has also experienced significant price increases. These trends, combined with the current high interest rate environment, suggest a robust and dynamic housing market in this Hercules zip code.
