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Zip Code 95354: Rising Home Values and Ownership Trends in Modesto's Dynamic Housing 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 95354, located in Modesto, California, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a gradual increase in homeownership, coupled with significant growth in average home values and rent prices. The homeownership rate in zip code 95354 has shown a slight upward trend, increasing from 43% in 2014 to 46% in 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2014, the average home price was $159,555, which more than doubled to $387,491 by 2022, representing a 143% increase over eight years. This trend suggests that despite rising home prices, more residents in the area have been able to transition into homeownership.
Federal interest rates have played a significant role in homeownership trends. From 2014 to 2021, interest rates remained relatively low, ranging from 0.09% to 1.83%. This period of low interest rates corresponded with the gradual increase in homeownership rates in zip code 95354. The low-interest environment likely made mortgages more accessible and affordable for potential homebuyers, contributing to the rise in homeownership.
Renter percentages in zip code 95354 have slightly decreased from 57% in 2014 to 54% in 2022, inversely mirroring the increase in homeownership. During this period, average rent prices have also increased, albeit at a slower rate compared to home prices. The average rent rose from $1,109 in 2014 to $1,185 in 2022, an increase of about 7%. This moderate increase in rent prices, compared to the more dramatic rise in home prices, may have contributed to maintaining a relatively stable renter population.
In 2023 and 2024, the housing market in zip code 95354 showed interesting developments. The average home price slightly decreased to $378,520 in 2023, before rebounding to $393,292 in 2024. This represents a modest 3.9% increase from 2022 to 2024. Notably, federal interest rates rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to the temporary dip in home prices in 2023 and the subsequent slower growth rate compared to previous years.
Looking ahead, predictive models suggest that average home prices in zip code 95354 may continue to rise, but at a more moderate pace. Over the next five years, we can expect average home prices to potentially reach around $450,000 to $500,000, assuming current economic conditions persist. Rent prices are also projected to increase, potentially reaching an average of $1,300 to $1,400 per month within the same timeframe.
In summary, zip code 95354 has demonstrated resilience in its housing market, with increasing homeownership rates despite rising home prices. The area has benefited from periods of low interest rates, which supported homeownership growth. While both home prices and rents have increased, the more dramatic rise in home values suggests a strong demand for homeownership in this Modesto neighborhood. The recent uptick in interest rates may moderate future price growth, but the overall trend remains positive for both homeowners and investors in this market.
