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Zip Code 95350: Average Home Values and Ownership Trends in Modesto's Growing Neighborhood
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
The 95350 zip code in Modesto, California, has experienced significant changes in homeownership, average home prices, and average rent prices over the past decade. This area has seen a gradual increase in population, coupled with fluctuations in the housing market that reflect broader economic trends.
From 2013 to 2022, the homeownership rate in the 95350 zip code remained relatively stable, hovering around 51%. However, there was a notable increase in 2022, with the ownership percentage rising to 54%. This shift coincided with a substantial rise in average home prices. In 2013, the average home price was $147,583, which more than doubled to $417,382 by 2022, representing a 183% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code is interesting. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 2.16%), the homeownership rate remained relatively constant at 51%. However, when interest rates rose sharply to 1.68% in 2022, there was a surprising increase in homeownership to 54%. This suggests that other local factors may have had a stronger influence on homeownership than interest rates alone.
Renter percentages in the 95350 zip code showed a slight decrease from 49% in 2013 to 46% in 2022. During this period, average rent prices increased steadily. In 2013, the average rent was $1,139, which rose to $1,259 by 2022, an increase of about 10.5%. The population growth from 49,149 in 2013 to 54,822 in 2022 likely contributed to the upward pressure on rent prices, despite the slight decrease in the percentage of renters.
In 2023, the average home price in the 95350 zip code decreased slightly to $408,650, a 2.1% drop from 2022. However, in 2024, the average home price rebounded to $424,710, showing a 3.9% increase from 2023. This recent uptick occurs despite high interest rates of 5.02% in 2023 and 5.33% in 2024, suggesting a resilient local housing market.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in the 95350 zip code will continue to rise moderately over the next five years. A conservative estimate suggests an annual increase of 3-5%, potentially reaching around $490,000 to $520,000 by 2029. Average rent prices are also likely to continue their upward trajectory, albeit at a slower pace. We might expect average rents to increase by 2-3% annually, potentially reaching $1,400 to $1,450 by 2029.
In summary, the 95350 zip code has demonstrated a robust housing market with steadily increasing home values and rent prices. The recent uptick in homeownership, despite rising interest rates, suggests a strong local demand for housing. While the area has experienced some fluctuations, the overall trend points towards continued growth in both the ownership and rental markets, reflecting the area's increasing desirability and economic stability.
