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Zip Code 95824: Sacramento's Shifting Housing Landscape and Tripled Home Values
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 95824, an urban neighborhood in Sacramento, California, spans 3.95 square miles and has experienced significant changes in its housing market over the past decade. This area has seen a general decrease in homeownership rates while average home prices and rent have shown an upward trend. The homeownership rate in zip code 95824 has slightly declined over the years. In 2013, the rate was 43%, but by 2022, it had decreased to 41%. This decline coincided with a significant increase in average home prices. The average home price in 2013 was $111,062, which rose dramatically to $378,109 by 2022, representing a 240% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents in the area.
Federal interest rates have influenced homeownership trends in the area. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate in 95824 decreased from 43% to 38%. This unexpected trend might be attributed to rapidly increasing home prices outpacing the benefits of low interest rates. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate showed a slight recovery, reaching 40% in 2019.
The renter population in zip code 95824 has generally increased as homeownership rates declined. In 2013, 57% of residents were renters, which increased to 59% by 2022. This rise in renters coincided with an increase in average rent prices. The average rent in 2013 was $1,025, which grew to $1,171 by 2022, an increase of about 14%. The population in the zip code remained relatively stable during this period, fluctuating between approximately 29,000 and 31,000 residents.
Recent data shows that the average home price in 95824 was $364,767 in 2023, a slight decrease from 2022. However, in 2024, the average home price has rebounded to $373,866. This recent trend occurs alongside a significant increase in interest rates, which rose from 5.02% in 2023 to 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, average home prices in zip code 95824 are expected to continue their overall upward trajectory, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also likely to increase, driven by ongoing demand for rental properties and overall cost of living increases in the Sacramento area.
In summary, zip code 95824 has experienced a gradual shift towards a higher percentage of renters over the past decade, coupled with substantial increases in both average home prices and average rent prices. The interplay between federal interest rates, housing affordability, and local economic factors has contributed to these trends. As the area moves forward, it will likely continue to see changes in its housing market dynamics, with potential impacts on the community's demographic composition and economic landscape.
