Loading Content...
Zip Code 95966: Rising Home Values and Ownership Rates in Oroville East, California
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 95966, located in Oroville East, California, presents an interesting case study of homeownership and rental trends over the past decade. This area has experienced notable fluctuations in population density and housing dynamics, with a general trend towards increased homeownership in recent years.
The ownership percentage in zip code 95966 has shown a steady increase from 70% in 2016 to 75% in 2022, indicating a growing preference for homeownership in the area. This trend coincides with significant growth in average home prices, which rose from $190,955 in 2016 to $335,244 in 2022, representing a 75.6% increase over six years. The correlation between rising homeownership rates and increasing home prices suggests a strong demand for housing in this zip code, despite the escalating costs.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 95966. The period from 2016 to 2022 saw interest rates fluctuate, starting at 0.4% in 2016, peaking at 2.16% in 2019, and then dropping to 0.08% in 2021 before rising to 1.68% in 2022. The low interest rates during most of this period likely contributed to the increased homeownership rates, as more affordable financing options made purchasing homes more accessible to potential buyers.
Conversely, the renter percentage in zip code 95966 decreased from 30% in 2016 to 25% in 2022. Despite this decline, average rent prices showed an overall upward trend, rising from $1,088 in 2016 to $1,042 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $1,151. The inverse relationship between declining renter percentages and generally increasing rent prices might indicate a tightening rental market, possibly driven by the growing population, which increased from 30,425 in 2016 to 29,939 in 2022, despite some fluctuations.
In 2023 and 2024, the housing market in zip code 95966 experienced a shift. The average home price decreased from $335,244 in 2022 to $315,100 in 2023, and further to $309,477 in 2024. This decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market, making mortgages more expensive and potentially dampening demand.
Looking ahead, predictive models suggest that average home prices in zip code 95966 may continue to face downward pressure in the short term due to high interest rates. However, given the area's historical resilience and the ongoing trend towards homeownership, prices are likely to stabilize and potentially see modest growth over the next five years. Rent prices, on the other hand, may continue to rise moderately, driven by the area's consistent population and the reduced pool of rental properties due to increased homeownership.
In summary, zip code 95966 has demonstrated a clear trend towards increased homeownership, with average home prices showing substantial growth until 2022. The recent cooling in the housing market, influenced by rising interest rates, presents a new dynamic that will shape the area's housing landscape in the coming years. The interplay between homeownership rates, housing prices, and rental market dynamics will continue to be crucial factors in determining the area's residential development and community composition.
