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Zip Code 94582: Stable Ownership Amid Soaring Home Values in San Ramon, California
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
San Ramon, California, zip code 94582, is a thriving suburban area known for its high-quality schools and proximity to major tech hubs. This area has experienced significant growth in population and housing prices over the past decade, with homeownership rates remaining relatively stable around 70% and average home prices more than doubling since 2010.
The homeownership rate in zip code 94582 has remained consistently high, fluctuating between 68% and 70% from 2013 to 2022. During this period, average home prices saw a substantial increase. In 2010, the average home price was $682,326, which rose steadily to reach $1,873,408 in 2022, representing a 174% increase over 12 years. This trend suggests that despite the rising home prices, the area has maintained its appeal to homeowners, likely due to its desirable location and amenities.
Federal interest rates have played a role in homeownership trends in the area. From 2010 to 2016, interest rates remained below 0.5%, coinciding with a period of steady homeownership rates around 68-69%. As interest rates began to rise in 2017, reaching 1.83% in 2018, there was a slight increase in homeownership to 69%. The low interest rates during this period likely contributed to maintaining high homeownership rates despite rising home prices, as mortgages remained relatively affordable.
Renter percentages in zip code 94582 have remained fairly stable, ranging from 29% to 32% between 2013 and 2022. Average rent prices have shown a significant upward trend during this period. In 2013, the average rent was $1,810, which increased to $2,862 by 2022, representing a 58% rise. This increase in rent prices has occurred alongside population growth, with the population rising from 36,164 in 2013 to 44,705 in 2022, a 24% increase. The growing population and rising home prices may have contributed to the increased demand for rentals and subsequent rise in rent prices.
In 2023, the average home price in zip code 94582 experienced a slight decrease to $1,765,168, down 5.8% from the previous year. However, 2024 has seen a rebound, with the average home price rising to $1,859,881, a 5.4% increase from 2023. This recovery is occurring despite the Federal interest rate reaching 5.33% in 2024, the highest level since 2007. These figures indicate a resilient housing market in the area, capable of maintaining strong prices even in a high interest rate environment.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 94582 may continue to rise over the next five years, albeit at a more moderate pace. A conservative estimate would suggest an annual appreciation rate of 3-5%, potentially reaching an average home price of around $2.2-$2.4 million by 2029. Average rent prices are also likely to continue their upward trajectory, potentially increasing by 2-3% annually, which could result in average rents reaching approximately $3,200-$3,400 by 2029.
In summary, zip code 94582 in San Ramon has demonstrated a robust housing market characterized by high homeownership rates, rapidly appreciating home values, and steadily increasing rent prices. The area has shown resilience in maintaining these trends despite fluctuations in interest rates and significant population growth. The recent rebound in home prices, even in a high interest rate environment, suggests continued strength in the local real estate market for the foreseeable future.
