Loading Content...
Zip Code 94606: Oakland's Urban Housing Dynamics with Stable Homeownership Amid Rising Home Values
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 94606, located in Oakland, California, has experienced significant changes in its housing market over the past decade. This area, known for its diverse community and proximity to downtown Oakland, has seen fluctuating trends in homeownership rates and substantial increases in both average home prices and average rent prices. The homeownership rate in zip code 94606 has remained relatively stable, hovering around 19-20% from 2013 to 2022. However, this stability in ownership percentage contrasts sharply with the dramatic rise in average home prices. In 2013, the average home price was $293,337, which steadily increased to $785,901 by 2022, representing a remarkable 168% increase over nine years. This substantial growth in home values did not significantly impact the homeownership rate, suggesting that other factors, such as income levels or housing preferences, may have played a more prominent role in determining homeownership in this area.
Federal interest rates have shown a complex relationship with homeownership rates in this zip code. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.83%), the homeownership rate remained relatively constant. This suggests that in this particular area, factors other than interest rates, such as high home prices or local economic conditions, may have had a more significant influence on homeownership decisions.
The renter population in zip code 94606 has consistently comprised about 80-82% of the total occupancy from 2013 to 2022. This high percentage of renters aligns with the urban nature of Oakland and the area's proximity to employment centers. Average rent prices have shown a steady upward trend, increasing from $1,153 in 2013 to $1,386 in 2022, a 20% rise over nine years. This increase in rent prices, while significant, was not as dramatic as the surge in home prices. The relatively stable renter percentage, despite rising rents, might indicate a strong demand for rental properties in this area, possibly driven by factors such as job opportunities or lifestyle preferences.
In 2023 and 2024, the housing market in zip code 94606 experienced a notable shift. The average home price decreased from $785,901 in 2022 to $713,001 in 2023, and further to $691,402 in 2024, representing a total decline of about 12% over two years. This downturn coincided with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market in this area.
Looking ahead, based on recent trends and current market conditions, we can expect the following 5-year forecasts for zip code 94606: Average home prices may stabilize or show modest growth after the recent correction, potentially reaching around $750,000 by 2029. Average rent prices are likely to continue their upward trajectory, albeit at a slower pace, potentially reaching approximately $1,600 by 2029.
In summary, zip code 94606 has demonstrated resilience in its rental market, with consistently high renter occupancy rates despite rising rents. The area has seen substantial appreciation in home values, although recent years have brought a correction in housing prices. The interplay between federal interest rates, local economic factors, and housing preferences will continue to shape the real estate landscape in this Oakland neighborhood.
