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Zip Code 95436: Resilient Homeownership Amid Rising Home Values in Forestville
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 95436, located in Forestville, California, is a dynamic area that has experienced notable shifts in homeownership rates and housing prices over the past decade. This analysis explores the intricate relationship between ownership percentages, average home prices, and average rent prices in this region. The homeownership rate in zip code 95436 has shown remarkable stability, with only minor fluctuations between 2013 and 2022. In 2013, the ownership rate stood at 71%, and by 2022, it had increased slightly to 72%. During this period, average home prices in the area experienced significant growth. In 2013, the average home price was $305,623, which steadily rose to $642,648 by 2022, representing a substantial 110% increase over nine years.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 95436. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained steady at 71-72%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), the area saw a slight increase in homeownership, peaking at 74% in 2017. This trend suggests that despite rising interest rates, other factors such as strong local economic conditions or the desire to lock in home purchases before further rate increases may have influenced homeownership decisions.
The renter population in zip code 95436 has experienced a corresponding inverse trend to homeownership. In 2013, renters constituted 29% of the population, which decreased slightly to 28% by 2022. Interestingly, average rent prices have shown more volatility compared to homeownership rates. In 2013, the average rent was $1,628, which fluctuated over the years, reaching a low of $1,292 in 2019 before increasing to $1,366 in 2022. This represents a 16% decrease in average rent prices from 2013 to 2022, despite the area's population growth from 5,320 in 2013 to 5,853 in 2022.
Looking at the most recent data, the average home price in zip code 95436 stood at $637,677 in 2023 and increased to $653,868 in 2024. This represents a 2.5% year-over-year increase, indicating continued growth in the local real estate market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 95436 will continue to rise, albeit at a more moderate pace. Based on historical data and current economic conditions, we project average home prices to reach approximately $750,000 by 2029. For average rent prices, we expect a gradual increase, potentially reaching around $1,600 by 2029, assuming economic stability and continued population growth in the area.
In summary, zip code 95436 has demonstrated resilience in homeownership rates despite significant increases in average home prices. The inverse relationship between homeownership and rental rates has remained relatively stable, with only minor fluctuations over the past decade. The recent surge in federal interest rates, coupled with the continued rise in home prices, may present new challenges for potential homebuyers in the coming years. However, the area's steady population growth and historically stable homeownership rates suggest a robust and desirable local real estate market.
