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Zip Code 96057: McCloud's Rising Home Values and Ownership Trends Amid Interest Rate Fluctuations
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 96057, located in McCloud, California, is a rural area spanning 191.25 square miles. This region has experienced fluctuating homeownership rates and property values over the past decade, reflecting broader economic trends and local dynamics.
The homeownership rate in McCloud has shown an overall increase from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 61%, which rose to a peak of 78% in 2018 before settling at 71% in 2022. This upward trend in homeownership coincided with a significant increase in average home prices. The average home price in the area rose from $138,993 in 2013 to $341,115 in 2022, representing a 145% increase over this period.
Federal interest rates have played a role in shaping homeownership trends in McCloud. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership increased from 61% to 71%, likely due to more affordable financing options. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates stabilized around 71-73%, suggesting a continued desire for homeownership despite higher borrowing costs.
Renter percentages in McCloud have generally declined as homeownership increased. The renter-occupied percentage decreased from 39% in 2013 to 29% in 2022. Average rent prices fluctuated during this period. The average rent peaked at $1,113 in 2013, dropped to a low of $876 in 2018, and then rebounded to $1,041 in 2022. These fluctuations in rent prices occurred against a backdrop of declining population, which fell from 822 in 2013 to 624 in 2022, potentially influencing rental market dynamics.
In 2023, the average home price in McCloud slightly decreased to $337,591, and in 2024, it further declined to $323,096. This recent downward trend in home prices 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 may be contributing to a cooling of the local housing market.
Looking ahead, predictive models suggest that average home prices in McCloud may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid increases seen in the early 2020s. Average rent prices are expected to remain relatively stable with potential for slight increases, influenced by factors such as local economic conditions and housing demand.
In summary, McCloud has seen a notable increase in homeownership rates and average home prices over the past decade, with recent years showing signs of market stabilization. The interplay between federal interest rates, population changes, and local economic factors has shaped these trends, resulting in a dynamic housing market in this California zip code.
