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Zip Code 95401: Rising Home Values and Ownership Trends in Santa Rosa
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 95401, located in Santa Rosa, California, has experienced dynamic shifts in its housing market over the past decade. This area has seen notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 95401 has shown resilience, with a slight increase from 51% in 2015 to 57% in 2022. This upward trend in homeownership coincided with a substantial rise in average home prices. In 2015, the average home price was $414,009, which steadily increased to $655,022 by 2022, representing a significant 58% growth over seven years. This trend suggests that despite rising prices, local residents have maintained their ability and desire to own homes.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting pattern. From 2015 to 2020, when interest rates were relatively low (ranging from 0.13% to 2.16%), homeownership rates increased from 51% to 57%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, it's noteworthy that homeownership rates remained stable at 57% in 2022 despite a significant increase in interest rates to 1.68%, indicating other factors may be influencing homeownership decisions in this area.
Renter percentages in zip code 95401 have remained relatively stable, fluctuating between 43% and 47% from 2013 to 2022. However, average rent prices have shown a consistent upward trend. In 2013, the average rent was $1,486, which increased to $1,712 by 2022, a 15% rise over nine years. This increase in rent prices, while significant, was less dramatic than the growth in home prices during the same period. The population in this zip code has remained relatively stable, with only minor fluctuations, suggesting that the rent price increases are more likely due to market factors rather than population pressure.
In 2023 and 2024, the housing market in zip code 95401 showed signs of stabilization. The average home price in 2023 was $654,732, a slight decrease from 2022, but it rebounded to $665,425 in 2024. This indicates a cooling but still robust housing market. Interestingly, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 95401 may continue to rise moderately over the next five years, potentially reaching around $700,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $2,000 per month within the same timeframe. These projections are based on historical trends and current market conditions, assuming no major economic disruptions.
In summary, zip code 95401 has demonstrated a strong housing market with increasing homeownership rates despite rising home prices. The area has shown resilience in maintaining homeownership levels even as interest rates have fluctuated. Rent prices have also increased, but at a slower pace than home prices. The recent stabilization in home prices, coupled with higher interest rates, may signal a more balanced market in the coming years, potentially offering opportunities for both homeowners and renters in this Santa Rosa community.
