Loading Content...
Zip Code 95589: Average Home Values and Ownership Trends in Shelter Cove, California
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 95589, located in Shelter Cove, California, presents an intriguing case study of housing trends in a small coastal community. This area has experienced significant fluctuations in homeownership rates and property values over the past decade, reflecting broader economic shifts and local market dynamics.
The ownership percentage in zip code 95589 has shown considerable variability, ranging from a low of 66% in 2019 to a high of 81% in 2022. This upward trend in homeownership coincides with substantial changes in average home prices. In 2010, the average home price was $294,837, which increased to $469,243 by 2022, representing a significant 59% growth over 12 years. Notably, the most dramatic rise occurred between 2020 and 2022, with average home prices jumping from $397,786 to $469,243, a 18% increase in just two years.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 95589. The period from 2010 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 71% to 75%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a surprising increase in homeownership to 81%. This counterintuitive trend suggests that local factors may have outweighed the impact of rising interest rates on homebuying decisions in this particular zip code.
Renter percentages in zip code 95589 have fluctuated inversely to homeownership rates, naturally. The highest percentage of renters was recorded in 2019 at 34%, corresponding with the lowest homeownership rate. Average rent prices have shown considerable volatility. In 2013, the average rent was $1,352, which peaked at $2,009 in 2016 before declining to $1,350 in 2022. This represents a 33% decrease from the 2016 peak. Interestingly, the population of the zip code has also fluctuated, from a high of 682 in 2014 to 436 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, we see a reversal in the upward trend of average home prices in zip code 95589. The average home price decreased from $469,243 in 2022 to $441,764 in 2023, and further declined to $408,535 in 2024. This represents a 13% decrease over two years. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, the highest levels in over a decade.
Looking ahead, our predictive models suggest a potential stabilization in average home prices for zip code 95589 over the next five years. We anticipate a modest annual growth rate of 2-3%, which would bring average home prices to approximately $450,000 by 2029. For rent prices, we project a gradual increase, with average rents potentially reaching $1,500 by 2029, assuming steady population growth and continued demand for rental properties in the area.
In summary, zip code 95589 has demonstrated resilience in its housing market despite significant economic fluctuations. The area has maintained a high rate of homeownership, even in the face of rising home prices and interest rates. The recent downturn in average home prices, coupled with high interest rates, may present new challenges and opportunities for both homeowners and renters in this coastal California community.
