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Zip Code 95835: Sacramento's Rising Home Values and Shifting Ownership Trends
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 95835, located in Sacramento, California, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a general trend of increasing homeownership and rising average home prices, with some fluctuations in average rent prices. The ownership percentage in zip code 95835 has shown a steady increase from 2013 to 2022. In 2013, the homeownership rate was 61%, which rose to 68% by 2022. This upward trend correlates with the substantial growth in average home prices during the same period. In 2013, the average home price was $265,324, which more than doubled to $613,467 by 2022. This significant appreciation in home values likely contributed to the increasing attractiveness of homeownership in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 95835. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, fluctuating between 58% and 61%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a notable increase in homeownership, reaching 64% in 2019. This trend suggests that despite rising interest rates, other factors such as strong economic conditions and the desire to lock in home purchases before further rate increases may have influenced homeownership decisions.
The renter percentage in zip code 95835 has correspondingly decreased from 39% in 2013 to 32% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $1,733, which increased to $1,830 by 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $1,986. These rent increases, coupled with rising home prices, may have incentivized some renters to transition to homeownership, contributing to the declining renter percentage.
Looking at the most recent data, the average home price in zip code 95835 for 2023 was $580,366, showing a slight decrease from 2022. However, the 2024 average home price has risen to $589,301, indicating a potential rebound in the market. The federal interest rate in 2023 was 5.02%, increasing to 5.33% in 2024, which may impact future homeownership trends and affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 95835 will continue to rise, albeit at a more moderate pace than seen in recent years. The average home price could potentially reach around $650,000 to $700,000 by 2029. Average rent prices are also expected to increase, potentially reaching $2,100 to $2,300 per month within the next five years, assuming current economic conditions and local market factors remain relatively stable.
In summary, zip code 95835 has demonstrated a clear trend of increasing homeownership rates and rising property values over the past decade. The interplay between federal interest rates, average home prices, and rent costs has shaped the housing market dynamics in this area. While homeownership has become more prevalent, the rising costs of both buying and renting properties suggest a competitive and potentially challenging housing market for residents in the coming years.
