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Zip Code 95983: Rising Home Values and Ownership in Rural Taylorsville, 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 95983, located in Taylorsville, California, is a rural area characterized by its low population density and fluctuating homeownership rates. Over the past decade, this region has experienced significant shifts in both ownership percentages and average home prices, reflecting the dynamic nature of its real estate market.
The homeownership rate in zip code 95983 has shown a general upward trend from 2013 to 2022. In 2013, the ownership rate was 59%, which steadily increased to reach 87% in 2020. However, there was a slight decline to 78% in 2022. This overall increase in homeownership coincided with a rise in average home prices. From 2016 to 2022, average home prices in the area grew from $240,350 to $334,181, representing a substantial 39% increase over six years.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general trend of lower interest rates encouraging higher homeownership. For instance, as interest rates remained low from 2013 to 2020 (ranging from 0.09% to 0.38%), homeownership rates in the area increased from 59% to 87%. This aligns with the principle that lower interest rates make mortgages more affordable, potentially encouraging more people to buy homes.
Renter percentages in zip code 95983 have shown an inverse relationship to homeownership rates, decreasing from 41% in 2013 to 21% in 2022. Interestingly, average rent prices have remained relatively stable during this period, with some fluctuations. In 2013, the average rent was $1,096, which peaked at $1,115 in 2018 before decreasing to $1,053 in 2022. This stability in rent prices, despite the decreasing renter population, could be attributed to the area's small population size, which ranged from 212 to 304 residents between 2010 and 2022.
In 2023 and 2024, average home prices in zip code 95983 experienced a slight decline. The average home price decreased from $334,181 in 2022 to $314,537 in 2023, and further to $308,119 in 2024. This decline coincides with a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of home prices in the area.
Looking ahead to the next five years, predictive models suggest that average home prices in zip code 95983 may continue to experience moderate fluctuations. If interest rates remain elevated, we might see a period of price stabilization or slight declines. However, given the area's limited housing stock and potential for rural appeal, prices could rebound once the market adjusts to higher interest rates. Rent prices are expected to remain relatively stable, potentially with slight increases to keep pace with inflation.
In summary, zip code 95983 has seen a significant increase in homeownership rates and average home prices over the past decade, likely influenced by previously low interest rates. However, recent increases in interest rates have coincided with a slight cooling in the housing market. The area's small population and rural nature contribute to its unique real estate dynamics, with relatively stable rent prices despite changing renter percentages. As we move forward, the interplay between interest rates, local economic factors, and housing demand will continue to shape the real estate landscape in this California community.
