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Zip Code 95386: Rising Home Values and Shifting Ownership Trends in Waterford, 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 95386, located in Waterford, California, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a general trend of increasing population and fluctuating homeownership rates, alongside significant changes in average home and rent prices.
The homeownership rate in zip code 95386 has shown some variability over the years. In 2013, the homeownership rate was 69%, which decreased slightly to 66% by 2015. However, it rebounded to 68% in 2017 and maintained that level through 2020. The most recent data from 2022 shows a significant drop to 60% homeownership. During this period, average home prices in the area have seen substantial growth. In 2013, the average home price was $147,543, which more than doubled to $418,221 by 2022. This represents a 183% increase over nine years, indicating a strong appreciation in property values.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 66-69%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, we see a corresponding drop in homeownership rates to 60% in 2022. This aligns with the general trend that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 95386 have shown an inverse relationship to homeownership rates, naturally. The renter population increased from 31% in 2013 to 40% in 2022. During this period, average rent prices also saw an upward trend. In 2013, the average rent was $1,084, which increased to $1,159 by 2022, representing a 6.9% increase. It's worth noting that the population of the zip code grew from 10,140 in 2013 to 10,962 in 2022, a 8.1% increase, which likely contributed to the demand for rental properties.
Looking at the most recent data, the average home price in zip code 95386 for 2023 was $405,760, showing a slight decrease from 2022. However, the 2024 average home price has rebounded to $417,731. This recent fluctuation occurs against the backdrop of significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be influencing the housing market dynamics in the area.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in both average home prices and rent prices in zip code 95386. Based on the historical data and current economic conditions, average home prices could potentially reach around $480,000 by 2029. Average rent prices may see a more moderate increase, potentially reaching approximately $1,350 by 2029. These projections assume a continuation of current trends and stable economic conditions.
In summary, zip code 95386 has experienced significant growth in average home prices over the past decade, with a recent slight dip followed by a rebound. Homeownership rates have fluctuated but show a recent decline, possibly influenced by rising interest rates. The rental market has seen steady growth in both percentage of renters and average rent prices. The area's increasing population and economic factors will likely continue to shape these housing trends in the coming years.
