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Zip Code 94590: Rising Home Values and Shifting Ownership in Vallejo's Maritime Neighborhood
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 94590, located in Vallejo, California, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a shift from a predominantly owner-occupied community to one with a higher proportion of renters, alongside substantial increases in both average home prices and average rent.
The homeownership rate in zip code 94590 has shown a notable decline from 2013 to 2022. In 2013, 44% of housing units were owner-occupied, but by 2018, this figure had dropped to 38%. However, there has been a slight recovery in recent years, with the ownership rate rising to 42% by 2022. This trend correlates interestingly with average home prices, which have seen a dramatic increase over the same period. In 2013, the average home price was $151,054, but by 2022, it had more than tripled to $509,642. This substantial increase in home prices likely contributed to the initial decline in homeownership rates, as affordability became a significant challenge for potential buyers.
Federal interest rates have played a crucial role in shaping homeownership trends in this zip code. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, likely due to the offsetting effects of low interest rates and rising home prices. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a corresponding dip in homeownership rates to their lowest point of 38% in 2018. The subsequent decrease in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with a modest recovery in homeownership rates to 42% by 2022.
The renter population in zip code 94590 has grown from 56% in 2013 to a peak of 62% in 2018, before settling at 58% in 2022. This trend has been accompanied by a steady increase in average rent prices. In 2013, the average rent was $1,254, which rose to $1,561 by 2022, representing a 24.5% increase over nine years. The population in this zip code has remained relatively stable, growing from 33,878 in 2013 to 35,678 in 2022, suggesting that the increase in renter percentage and rent prices is not solely driven by population growth but also by shifts in housing preferences and affordability.
In 2023 and 2024, we see some interesting developments in the housing market for zip code 94590. The average home price in 2023 was $484,640, showing a slight decrease from the 2022 peak. However, in 2024, there's a modest recovery with the average home price rising to $488,490. This coincides with higher federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting home buying decisions and market dynamics.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 94590 may continue to experience moderate growth, potentially reaching around $550,000 by 2029, assuming economic conditions remain stable. Average rent prices could follow a similar trajectory, potentially increasing to approximately $1,800 per month by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 94590 has undergone significant changes in its housing landscape over the past decade. The area has shifted towards a higher proportion of renters, while experiencing substantial increases in both average home prices and rent. The interplay between federal interest rates, housing affordability, and demographic shifts has shaped these trends. Moving forward, the community may continue to see moderate growth in both home prices and rent, with potential for further adjustments in the homeownership rate based on economic conditions and housing market dynamics.
