Loading Content...
Zip Code 94589: Rising Home Values and Shifting Ownership in Vallejo, California
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 94589, located in Vallejo, California, has experienced notable fluctuations in homeownership rates and property values over the past decade. This area has seen a gradual increase in homeownership, rising from 55% in 2016 to 61% in 2022. Concurrently, average home prices have shown substantial growth, more than tripling from $146,041 in 2010 to $524,322 in 2022. Average rent prices have also increased, albeit at a more modest pace, from $1,503 in 2013 to $1,675 in 2022.
The relationship between homeownership percentages and average home prices in zip code 94589 reveals an interesting trend. As average home prices steadily increased from $146,041 in 2010 to $524,322 in 2022, homeownership rates initially declined from 60% in 2013 to 55% in 2016. However, from 2016 onwards, despite continuing price increases, homeownership rates began to rise, reaching 61% by 2022. This suggests that other factors, such as local economic conditions or demographic shifts, may have influenced homeownership rates alongside price changes.
Federal interest rates have played a significant role in shaping homeownership trends. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.1% to 0.4%. During this time, homeownership rates in zip code 94589 remained relatively stable, fluctuating between 55% and 60%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates in the area actually increased from 59% to 62% by 2021. This counterintuitive trend suggests that local factors may have outweighed the impact of rising interest rates on homeownership decisions in this specific zip code.
Renter percentages and average rent prices in zip code 94589 have shown an inverse relationship to homeownership trends. As renter percentages decreased from 45% in 2016 to 39% in 2022, average rent prices increased from $1,572 to $1,675 during the same period. This trend indicates that despite rising rents, more residents were transitioning to homeownership. The population in the zip code remained relatively stable during this period, fluctuating between 29,833 and 30,795, suggesting that the shift from renting to owning was not driven by significant population changes.
Looking at the most recent data, average home prices in zip code 94589 experienced a slight decline from $524,322 in 2022 to $506,666 in 2023, followed by a modest increase to $519,521 in 2024. This recent trend coincides 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. These higher interest rates may have contributed to the temporary dip in home prices observed in 2023.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 94589 will continue to rise, albeit at a more moderate pace than seen in the previous decade. Based on historical data and current economic conditions, average home prices could potentially reach around $580,000 to $600,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,900 to $2,000 per month in the same timeframe.
In summary, zip code 94589 has demonstrated resilience in its housing market, with increasing homeownership rates despite rising home prices. The area has shown a notable shift towards homeownership, even in the face of increasing interest rates. Average home prices have seen substantial growth over the past decade, with a recent stabilization likely due to higher interest rates. Rent prices have also increased, but at a slower rate than home prices. Looking forward, we can expect continued growth in both home prices and rents, though potentially at a more moderate pace than in recent years.
