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Zip Code 95928: Rising Home Values and Shifting Ownership Patterns in Durham, 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 95928, located in Durham, California, has experienced notable shifts in its housing market over the past decade. This area, covering 127.94 square miles, has seen fluctuations in homeownership rates and significant changes in both average home prices and average rent prices.
The homeownership rate in zip code 95928 has shown a slight downward trend over the years. In 2013, the area had a homeownership rate of 47%, which remained relatively stable until 2022 when it decreased to 45%. This decline in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $260,934, and by 2022, it had risen dramatically to $485,978, representing an 86% increase over this period. This significant appreciation in home values may have contributed to the slight decrease in homeownership, as higher prices potentially priced out some prospective buyers.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained stable at around 47%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a slight decline in homeownership to 46% by 2019. This trend suggests that rising interest rates may have made homeownership less attainable for some residents.
The renter population in zip code 95928 has correspondingly increased, from 53% in 2013 to 55% in 2022. This rise in renters has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $1,176, which increased to $1,248 by 2021, representing a 6.1% increase. However, there was a slight decrease to $1,207 in 2022. The overall population growth from 38,323 in 2013 to 40,579 in 2022 likely contributed to the increased demand for rental properties, supporting the upward trend in rent prices despite minor fluctuations.
Looking at the most recent data, the average home price in zip code 95928 decreased from $485,978 in 2022 to $464,573 in 2023, and further to $459,684 in 2024. This represents a 5.4% decline over two years. Concurrently, federal interest rates increased significantly from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. This sharp rise in interest rates likely contributed to the cooling of home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 95928 may experience a period of stabilization or modest growth, assuming interest rates remain elevated. The recent price corrections could make homeownership more attainable for some buyers, potentially leading to a slight increase in homeownership rates. Average rent prices are expected to continue their gradual upward trajectory, driven by population growth and the ongoing demand for rental properties in the area.
In summary, zip code 95928 has witnessed a slight shift towards renting, with homeownership rates declining from 47% to 45% between 2013 and 2022. This trend coincided with a substantial 86% increase in average home prices during the same period. The recent cooling of home prices, coupled with higher interest rates, suggests a potential stabilization in the housing market. The rental market has shown resilience, with a steady increase in the renter population and generally rising average rent prices, reflecting the area's growing population and housing demand.
