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Zip Code 95135: Soaring Home Values and Stable Ownership in San Jose's Resilient Suburban 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 95135, located in San Jose, California, has experienced significant changes in its real estate landscape over the past decade. This area, known for its proximity to Silicon Valley's tech hub, has seen notable fluctuations in homeownership rates, average home prices, and average rent prices.
The homeownership rate in zip code 95135 has remained relatively stable, ranging from 87% to 89% between 2013 and 2022. The ownership percentage reached its highest points at 89% in 2014 and 2022, while it was at its lowest at 87% in 2015, 2017, 2018, and 2021. During this same period, average home prices in the area demonstrated a strong upward trend. The average home price increased from $756,625 in 2013 to $1,718,485 in 2022, representing a substantial 127% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code appears to be complex. Despite historically low interest rates from 2013 to 2021, ranging from 0.08% to 2.16%, the homeownership rate remained relatively stable. This suggests that other factors, such as the high home prices in the area, may have a more significant impact on homeownership than interest rates alone.
Renter percentages in zip code 95135 have shown slight fluctuations, ranging from 10% to 13% between 2013 and 2022. The average rent prices have generally increased during this period, albeit with some volatility. In 2013, the average rent was $1,989, which rose to $2,574 by 2022, representing a 29% increase. Notably, there was a significant jump in average rent from $2,067 in 2014 to $2,543 in 2015, a 23% increase in a single year. The population in the zip code has also fluctuated, peaking at 22,815 in 2018 before declining to 21,810 in 2022, which may have influenced rental market dynamics.
Looking at the most recent data, the average home price in zip code 95135 was $1,648,299 in 2023, showing a slight decrease from the 2022 peak. However, in 2024, the average home price has rebounded to $1,759,953, surpassing the 2022 level. This increase comes despite the federal interest rate rising to 5.33% in 2024, which is significantly higher than the rates seen in the previous decade.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in zip code 95135 will continue to rise, albeit at a more moderate pace. The area's desirability and limited housing supply are likely to support this upward trend. Average rent prices are also expected to increase, driven by the high cost of homeownership and the area's continued appeal to professionals in the tech industry.
In summary, zip code 95135 in San Jose has demonstrated resilience in its real estate market. The area has maintained a high homeownership rate despite substantial increases in average home prices. The rental market has also seen growth, with rising average rents and slight fluctuations in the renter population. The recent rebound in home prices, even in the face of higher interest rates, suggests a robust demand for housing in this desirable Silicon Valley location.
