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Zip Code 95672: Resilient Homeownership and Rising Values in Cameron Park, 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 95672, located in Cameron Park, California, exhibits a dynamic real estate landscape characterized by stable homeownership rates and evolving property values. This area has experienced significant changes in its housing market over the past decade, with notable trends in both ownership percentages and average home prices.
The homeownership rate in zip code 95672 has shown remarkable stability, with a slight upward trend over the years. In 2013, the area boasted a high 90% homeownership rate, which dipped slightly to 85% in 2015 and 2016. However, by 2022, it had rebounded to its initial 90% level. This resilience in homeownership is particularly noteworthy when considering the concurrent rise in average home prices. From 2013 to 2022, average home prices in the area surged from $392,311 to $801,707, representing a substantial 104% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting case. Despite the general trend of lower interest rates encouraging homeownership, this area maintained high ownership rates even as interest rates fluctuated. For instance, when interest rates were at historic lows of 0.08% in 2021, homeownership stood at 89%. Interestingly, as rates climbed to 1.68% in 2022, homeownership actually increased to 90%, suggesting that other local factors may have a stronger influence on homeownership in this particular market.
Rental trends in zip code 95672 have shown some variability. The percentage of renters peaked at 15% in 2015, 2016, and 2019, coinciding with periods of rising average rent prices. For example, average rent increased from $1,799 in 2015 to $1,970 in 2016. However, by 2022, the renter percentage had decreased to 10%, even as the average rent reached $1,853. This decrease in renters occurred despite a growing population, which increased from 4,984 in 2013 to 5,567 in 2022, suggesting a strong preference for homeownership in the area.
Looking at the most recent data, average home prices in zip code 95672 experienced a slight decline from $801,707 in 2022 to $770,002 in 2023, followed by a modest recovery to $786,647 in 2024. This trend coincides with a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the moderation in home price growth.
Applying predictive models to forecast 5-year trends, we anticipate a continued moderate growth in average home prices for zip code 95672, potentially reaching around $850,000 by 2029. Average rent prices are expected to follow a similar trajectory, possibly increasing to approximately $2,100 per month in the same timeframe. These projections assume relatively stable economic conditions and a continued preference for homeownership in the area.
In summary, zip code 95672 demonstrates a robust housing market with consistently high homeownership rates, despite significant increases in average home prices. The area has shown resilience to interest rate changes, maintaining strong ownership levels even as rates have fluctuated. The rental market, while smaller, has also seen steady growth in prices. Recent moderation in home price growth, coupled with rising interest rates, suggests a potential shift towards a more balanced market in the coming years.
