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Zip Code 95833: Sacramento's Resilient Housing Market Sees Rising Home Values and Ownership Rates
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
Sacramento's zip code 95833 presents an intriguing case study of housing dynamics in California's capital city. This area has experienced significant shifts in homeownership rates and property values over the past decade, reflecting broader economic trends and local market conditions.
The ownership percentage in zip code 95833 has shown a notable trend, decreasing from 47% in 2013 to a low of 42% in 2019, before rebounding to 49% in 2022. This fluctuation coincides with substantial changes in average home prices. In 2013, the average home price was $177,016, which more than doubled to $482,956 by 2022, representing a 172.8% increase over nine years. This rapid appreciation in home values likely contributed to the initial decline in homeownership rates, as rising prices made purchasing a home more challenging for many residents.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates in 95833 remained relatively stable, ranging from 44% to 47%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a corresponding decrease in homeownership rates to 42%. The subsequent drop in interest rates to 0.08% in 2021 coincided with an increase in homeownership to 47%, demonstrating the inverse relationship between interest rates and homeownership.
Renter percentages in zip code 95833 have mirrored the homeownership trends, increasing from 52% in 2013 to a peak of 57% in 2019, before declining to 51% in 2022. Average rent prices have steadily increased during this period, rising from $1,301 in 2013 to $1,521 in 2022, a 16.9% increase. This trend in rental prices has occurred alongside population growth, with the area's population increasing from 37,490 in 2013 to 40,578 in 2022, potentially contributing to the demand for rental properties.
In 2023 and 2024, we see a slight correction in the housing market of zip code 95833. The average home price decreased from $482,956 in 2022 to $456,131 in 2023, a 5.6% decline. However, there's a modest recovery in 2024, with prices rising to $464,771, a 1.9% increase from 2023. This aligns with the higher interest rates observed in these years, with rates at 5.02% in 2023 and 5.33% in 2024, potentially moderating home buying activity and price growth.
Looking ahead, we can forecast potential trends for the next five years. Given the historical data and current market conditions, we might expect average home prices in zip code 95833 to continue a moderate upward trajectory, potentially reaching around $520,000 by 2029. Rent prices may also continue to rise, albeit at a slower pace, potentially reaching an average of about $1,700 per month in the same timeframe. These projections assume relatively stable economic conditions and a gradual normalization of interest rates.
In summary, zip code 95833 in Sacramento has experienced significant changes in its housing market over the past decade. The area has seen substantial appreciation in home values, fluctuations in homeownership rates closely tied to interest rate changes, and steady increases in rental prices. The recent stabilization of home prices and the gradual increase in homeownership rates suggest a market that is finding equilibrium after years of rapid change. As the area continues to evolve, balancing affordability with growth will likely remain a key challenge for this dynamic Sacramento neighborhood.
