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Zip Code 94621: Rising Home Values and Stable Ownership in Oakland's Resilient Housing Market
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 94621, located in Oakland, California, presents an intriguing case study of urban housing dynamics. This area has experienced significant fluctuations in homeownership rates and substantial growth in both average home prices and average rent prices over the past decade.
The trend between ownership percentage and average home prices in zip code 94621 shows an interesting relationship. In 2013, the homeownership rate was 33%, with an average home price of $150,014. As average home prices steadily increased, reaching $552,828 in 2022, the homeownership rate remained relatively stable, fluctuating between 31% and 35%. Notably, despite a 268% increase in average home prices from 2013 to 2022, the homeownership rate actually increased slightly from 33% to 35% during this period.
Federal interest rates have played a role in homeownership trends in this zip code. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.40%), the homeownership rate remained steady around 32-33%. As interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), there was a slight dip in homeownership to 31% in 2019. Interestingly, when interest rates dropped again in 2020 (0.38%) and 2021 (0.08%), homeownership rebounded to 32% and 33% respectively, suggesting that lower interest rates did encourage home buying in this area.
Renter percentages and average rent prices in zip code 94621 have shown a consistent trend. In 2013, 67% of residents were renters, with an average rent of $1,237. By 2022, the renter percentage had decreased slightly to 65%, while average rent increased to $1,316, a 6.4% rise. The most significant jump in average rent occurred between 2020 and 2021, increasing from $1,316 to $1,533, a 16.5% surge, coinciding with a population increase from 37,289 to 38,646.
Looking at the most recent data, average home prices in zip code 94621 decreased from $552,828 in 2022 to $508,147 in 2023, a 8.1% drop. This trend continued into 2024, with prices further declining to $503,039. Concurrently, federal interest rates rose sharply from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024, potentially contributing to the cooling of the housing market.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 94621 to stabilize and potentially see modest growth, reaching approximately $530,000 by 2029. Average rent prices are expected to continue their upward trajectory, potentially hitting $1,700 by 2029, driven by the area's consistent population growth and high renter occupancy.
In summary, zip code 94621 demonstrates resilience in homeownership rates despite significant increases in average home prices. The area maintains a high proportion of renters, with steadily increasing average rents. Recent data shows a cooling in the housing market, likely influenced by rising interest rates. Moving forward, we expect a stabilization in home prices and continued growth in rental costs, reflecting the area's evolving urban landscape and housing demands.
