Loading Content...
Zip Code 94805: Rising Home Values and Fluctuating Ownership Rates in Richmond, 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 94805, located in Richmond, California, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen fluctuations in its ownership percentage and significant changes in average home and rent prices, reflecting the dynamic nature of its real estate market.
The ownership percentage in zip code 94805 has shown a general upward trend since 2013. In 2013, the homeownership rate was 65%, which decreased to 59% in 2015. However, it rebounded and reached 70% in 2020, the highest point in the available data. This increase in homeownership coincided with a substantial rise in average home prices. From 2016 to 2022, average home prices in the area increased by 62%, from $502,722 to $814,609. This trend suggests a strong correlation between rising home values and increased homeownership rates.
Federal interest rates have played a significant role in homeownership trends. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the increase in homeownership, as they made mortgage financing more accessible and affordable for potential buyers. The spike in homeownership to 70% in 2020 coincided with a federal interest rate of just 0.38%, illustrating the strong relationship between low interest rates and higher homeownership rates.
Renter percentages in zip code 94805 have generally decreased as homeownership rates increased. In 2015, the renter percentage peaked at 41%, corresponding with the lowest homeownership rate of 59%. As homeownership increased, the renter percentage declined to 30% by 2020. Interestingly, average rent prices have steadily increased despite the declining renter population. From 2013 to 2022, average rent prices rose from $1,629 to $1,860, a 14% increase. This trend suggests that despite fewer renters, demand for rental properties remained strong, possibly due to the area's growing population, which increased from 14,763 in 2013 to 15,688 in 2022.
In 2023 and 2024, the real estate market in zip code 94805 showed signs of stabilization. The average home price in 2023 was $758,906, a slight decrease from the 2022 peak of $814,609. In 2024, there was a marginal increase to $763,421. These figures indicate a cooling of the rapid price growth seen in previous years. Notably, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may have contributed to the moderation in home prices.
Looking ahead, predictive models suggest a continued but moderate increase in both average home and rent prices over the next five years. Home prices are expected to grow at a slower rate compared to the rapid increases seen from 2016 to 2022, potentially reaching around $850,000 by 2029. Average rent prices are projected to continue their steady climb, potentially reaching $2,100 by 2029. These predictions assume relatively stable economic conditions and interest rates.
In summary, zip code 94805 has experienced a significant increase in homeownership rates, correlating with rising home values and historically low interest rates until 2020. The recent stabilization of home prices and increase in interest rates may signal a new phase in the local real estate market. The area's consistent population growth and rising rent prices, despite a decreasing renter percentage, indicate a robust demand for housing in this Richmond neighborhood.
