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Zip Code 94952: Rising Home Values and Ownership Rates in Petaluma, California
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 94952 encompasses Petaluma in California, known for its historic downtown and thriving agricultural community. This area has experienced notable fluctuations in homeownership rates and housing prices over the past decade, with a general trend towards increasing average home values and rent prices.
The homeownership rate in zip code 94952 has shown moderate stability with slight increases over time. In 2013, the homeownership rate was 58%, and it gradually increased to 62% by 2019, before settling at 60% in 2022. This upward trend in homeownership coincided with a significant rise in average home prices. In 2013, the average home price was $536,486, and it steadily climbed to $1,075,860 by 2022, representing a substantial 100.5% increase over this period. The relationship between homeownership rates and average home prices suggests that despite the rising costs, residents in this area have maintained a strong inclination towards homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 94952. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which coincided with a slight increase in homeownership from 58% to 59%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates continued to climb, reaching 62% in 2019. This suggests that other local factors, such as strong employment or desirability of the area, may have outweighed the impact of rising interest rates on homeownership decisions.
Renter percentages in zip code 94952 have shown a corresponding decline as homeownership increased. The proportion of renters decreased from 42% in 2013 to 38% in 2019, before settling at 40% in 2022. Despite this decline, average rent prices have consistently increased. In 2013, the average rent was $1,542, and it rose to $1,883 by 2022, marking a 22.1% increase. This upward trend in rent prices, even as the renter population decreased, may indicate a competitive rental market or an overall increase in the cost of living in the area.
In 2023, the average home price in zip code 94952 slightly decreased to $1,067,040, representing a 0.8% drop from the previous year. However, 2024 has seen a rebound, with average home prices increasing to $1,084,596. This uptick occurs despite the federal interest rate rising to 5.33% in 2024, suggesting strong underlying demand for housing in this area.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in both average home prices and rent prices for zip code 94952. Based on historical data and current market conditions, average home prices are projected to reach approximately $1,250,000 by 2029. Average rent prices are expected to follow a similar upward trajectory, potentially reaching around $2,200 per month in the same timeframe.
In summary, zip code 94952 has demonstrated resilience in its housing market, with steady increases in homeownership rates despite rising home prices. The area has maintained a strong appeal for both owners and renters, as evidenced by the consistent growth in both home values and rent prices. The recent rebound in home prices in 2024, even in the face of higher interest rates, suggests a robust local real estate market that is likely to continue its upward trend in the coming years.
