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Zip Code 95012: Home Values and Ownership Trends in Elkhorn, 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 95012, located in Elkhorn, California, has experienced notable shifts in homeownership rates and property values over the past decade. This area has seen a dynamic interplay between ownership percentages, average home prices, and average rent costs, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 95012 has fluctuated over the years, showing an overall decline from 56% in 2013 to 54% in 2022. This trend coincided with a significant increase in average home prices, which rose from $274,167 in 2013 to $659,357 in 2022, representing a substantial 140.5% increase over nine years. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. For instance, the period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, the homeownership rate in zip code 95012 decreased from 56% to 51%, despite the favorable borrowing conditions. This counterintuitive trend might be attributed to the rapid increase in home prices, which outpaced the benefits of low interest rates for potential buyers.
Renter percentages in zip code 95012 have generally increased as homeownership rates declined, rising from 44% in 2013 to 46% in 2022. This shift coincided with fluctuations in average rent prices. The average rent increased from $1,342 in 2013 to $1,434 in 2022, representing a 6.9% increase over the period. Interestingly, the population in the zip code has remained relatively stable, growing from 10,481 in 2013 to 10,965 in 2022, suggesting that changes in renter percentages and rent prices were not primarily driven by population growth.
Looking at the most recent data, the average home price in zip code 95012 decreased slightly from $659,357 in 2022 to $644,303 in 2023, marking a 2.3% decline. However, in 2024, the average home price rebounded to $662,452, surpassing the 2022 level. This recent uptick occurs despite the significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. This resilience in home prices despite higher borrowing costs suggests strong underlying demand in the local real estate market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 95012 will continue to rise, albeit at a more moderate pace. The average home price is projected to reach approximately $725,000 by 2029. Average rent prices are expected to follow a similar upward trajectory, potentially reaching around $1,700 per month in the same timeframe.
In summary, zip code 95012 has experienced a notable decrease in homeownership rates alongside substantial increases in average home prices over the past decade. The rental market has grown, with modest increases in average rent prices. Despite recent fluctuations and rising interest rates, the local real estate market shows resilience, with home prices rebounding in 2024. These trends suggest a competitive housing market in Elkhorn, with continued growth expected in both home values and rental costs over the next five years.
