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Zip Code 95988: Rising Home Values and Ownership Trends in Willows, 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 95988, located in Willows, California, presents an intriguing case study of housing market dynamics. This area has experienced fluctuating trends in homeownership rates and housing prices over the past decade. The ownership percentage has shown variability, while average home prices have generally trended upward, and average rent prices have displayed a more volatile pattern.
The homeownership rate in zip code 95988 has fluctuated significantly between 2013 and 2022. Starting at 49% in 2013, it dropped to a low of 43% in 2016 before rebounding to 54% in 2022. Interestingly, this fluctuation coincided with a steady increase in average home prices. From 2013 to 2022, average home prices rose from $136,431 to $317,865, representing a substantial 133% increase. This trend suggests that despite rising home values, local factors may have influenced homeownership rates more strongly than price alone.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1%, which coincided with relatively stable homeownership rates between 46% and 49%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates initially dipped but then showed resilience, climbing back to 54% by 2022. This suggests that local economic factors and housing market conditions may have offset the potential negative impact of rising interest rates on homeownership.
Renter percentages in zip code 95988 have shown an inverse relationship to homeownership rates, as expected. The renter population peaked at 53% in 2016 when homeownership was at its lowest. Interestingly, average rent prices did not consistently follow this trend. From 2013 to 2022, average rent prices fluctuated, starting at $941 in 2013, dropping to a low of $784 in 2017, and then rising to $841 in 2022. The population of the area has remained relatively stable during this period, ranging from 8,631 to 9,193 residents, which suggests that factors beyond population growth were influencing rental market dynamics.
In 2023 and 2024, the housing market in zip code 95988 has shown some interesting developments. The average home price in 2023 was $308,049, representing a slight decrease from the 2022 figure. However, in 2024, the average home price increased to $314,339, indicating a recovery in the market. Notably, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership trends and housing affordability in the area.
Looking ahead, our predictive models forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $365,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially reaching $975 per month by 2029. These projections assume stable economic conditions and no major disruptions to the local housing market.
In summary, zip code 95988 has demonstrated resilience in its housing market despite fluctuations in homeownership rates and rising home prices. The area has maintained a relatively balanced mix of owners and renters, with recent trends favoring homeownership. The relationship between federal interest rates and local housing trends suggests that regional economic factors play a significant role in shaping the market. As we move forward, the area is poised for continued growth in both home values and rental prices, presenting both opportunities and challenges for residents and potential investors.
