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Zip Code 95246: Volatile Home Values and Ownership Rates in Mountain Ranch, 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 95246, located in Mountain Ranch, California, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This rural area has seen significant changes in its demographic composition and real estate market, reflecting broader economic trends and local developments.
The homeownership rate in zip code 95246 has shown considerable variability, ranging from a low of 66% in 2019 to a high of 90% in 2014. Simultaneously, average home prices have demonstrated a general upward trend, increasing from $178,134 in 2010 to $373,421 in 2022, representing a substantial 109% growth over this period. Notably, there appears to be a correlation between homeownership rates and average home prices, with some interesting patterns emerging.
For instance, as average home prices rose from $220,800 in 2015 to $258,577 in 2016, we observed a decrease in homeownership from 76% to 71%. This trend continued into 2017 and 2018, with homeownership remaining steady at 71% while average home prices continued to climb, reaching $301,023 in 2018. However, the relationship between federal interest rates and homeownership rates in this zip code doesn't always follow the expected pattern. For example, despite low interest rates of 0.08% in 2021, homeownership increased significantly from 83% in 2020 to 87% in 2021, suggesting that local factors may have a stronger influence on homeownership trends in this area than national interest rates.
Renter percentages and average rent prices in zip code 95246 have also shown interesting trends. The percentage of renters increased from 12% in 2013 to a peak of 34% in 2019, before declining to 13% in 2022. Average rent prices have generally increased over time, rising from $1,204 in 2013 to $1,390 in 2022, with some fluctuations in between. Notably, there was a significant spike in average rent to $2,045 in 2021, coinciding with a decrease in the renter percentage to 13%, suggesting a potential shift in the local rental market dynamics.
Looking at the most recent data, average home prices in zip code 95246 decreased slightly from $373,421 in 2022 to $363,707 in 2023, and further to $355,686 in 2024. This decline coincides with a 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. These higher interest rates may be contributing to the cooling of home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 95246 may continue to experience moderate growth, albeit at a slower pace than seen in recent years due to higher interest rates. We project average home prices could reach approximately $390,000 by 2029. For average rent prices, we forecast a continued upward trend, potentially reaching around $1,600 by 2029, assuming steady population growth and demand for rental properties in the area.
In summary, zip code 95246 has experienced significant fluctuations in homeownership rates and substantial growth in average home prices over the past decade. The relationship between these factors, along with rental market trends, reflects a dynamic real estate landscape in this California community. Recent increases in interest rates appear to be moderating home price growth, while rental prices continue to show an upward trajectory. These trends suggest a evolving housing market that will likely continue to adapt to changing economic conditions and local factors in the coming years.
