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Zip Code 95005: Rising Home Values and Declining Ownership in Ben Lomond's Redwood Forests
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
Ben Lomond, located in zip code 95005 in California, is a picturesque community nestled in the Santa Cruz Mountains. This area has experienced notable shifts in homeownership rates and housing prices over the past decade. From 2013 to 2022, the percentage of owner-occupied homes decreased from 74% to 65%, while average home prices more than doubled, rising from $457,812 to $996,722.
The relationship between homeownership rates and average home prices in Ben Lomond reveals an inverse correlation. As average home prices steadily increased, the percentage of owner-occupied homes generally declined. For instance, in 2013, when the average home price was $457,812, the homeownership rate was 74%. By 2022, as the average home price reached $996,722, the homeownership rate had dropped to 65%. This trend suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Ben Lomond. During periods of low interest rates, such as from 2013 to 2016 when rates remained below 0.5%, homeownership rates in the area stayed relatively stable, ranging from 73% to 75%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a more pronounced decline, dropping from 76% in 2017 to 65% in 2022.
The renter population in Ben Lomond has grown as homeownership rates declined. The percentage of renter-occupied homes increased from 26% in 2013 to 35% in 2022. This shift coincided with a substantial rise in average rent prices, which climbed from $1,501 in 2013 to $2,121 in 2022, representing a 41% increase. The growing renter population and rising rent prices may reflect the challenges of homeownership in an increasingly expensive market.
In 2023 and 2024, the housing market in Ben Lomond showed signs of stabilization. The average home price in 2023 was $950,046, a slight decrease from the 2022 peak, and in 2024 it marginally increased to $954,544. Interestingly, this occurred despite federal interest rates reaching 5.02% in 2023 and 5.33% in 2024, which are significantly higher than in previous years.
Looking ahead, predictive models suggest that average home prices in Ben Lomond may continue to experience moderate growth over the next five years, potentially reaching around $1.1 million by 2029. Average rent prices are also expected to rise, possibly surpassing $2,500 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Ben Lomond has witnessed a significant transformation in its housing landscape over the past decade. The area has experienced a notable decrease in homeownership rates, coupled with substantial increases in both average home prices and rent costs. The interplay between these factors, along with fluctuating interest rates, has reshaped the community's housing dynamics. As the market continues to evolve, it will be crucial to monitor these trends and their impact on the local population.
