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Zip Code 95409: Rising Home Values and Ownership Trends in Santa Rosa's Resilient 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 95409, located in Santa Rosa, California, is a dynamic area covering 37.69 square miles. This suburban region has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 95409 has remained relatively stable, ranging from 63% to 65% between 2013 and 2022. During this period, average home prices demonstrated significant growth. In 2013, the average home price was $431,028, which steadily increased to $762,077 by 2022, representing a substantial 76.8% increase over nine years. This upward trend in home prices, despite the relatively consistent homeownership rate, suggests a robust housing market in the area.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate in 95409 remained steady at around 63-64%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate showed slight fluctuations but remained within the 63-65% range. This resilience in homeownership rates, even as interest rates increased, indicates a strong desire for homeownership in this zip code.
Renter percentages in 95409 have complemented the homeownership rates, fluctuating between 35% and 37% from 2013 to 2022. Interestingly, average rent prices have shown a consistent upward trend during this period. In 2013, the average rent was $1,652, which increased to $2,118 by 2022, representing a 28.2% rise. This increase in rent prices, coupled with the relatively stable renter population, suggests a competitive rental market in the area. The population in 95409 has remained relatively stable, with 23,945 residents in 2013 and 24,272 in 2022, indicating that the rising rent prices are not primarily driven by population growth but rather by other market factors.
In 2023, the average home price in zip code 95409 reached $772,623, showing a continued upward trend. This increase occurred despite a significant rise in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has further increased to $784,403, with interest rates slightly higher at 5.33%. These figures demonstrate the resilience of the local housing market in the face of rising interest rates.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in zip code 95409 will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase, following the established trend. However, the rate of increase may moderate as the market adjusts to economic conditions and housing affordability concerns.
In summary, zip code 95409 in Santa Rosa has demonstrated a robust and resilient housing market over the past decade. The area has maintained a stable homeownership rate despite significant increases in average home prices and fluctuations in interest rates. The rental market has also shown strength, with consistently rising average rent prices. As we move forward, the housing market in this zip code is poised for continued growth, although economic factors may influence the pace of this growth in both the ownership and rental sectors.
