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Zip Code 96073: Palo Cedro's Stable Homeownership Amidst Rising Home Values
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
Palo Cedro, located in zip code 96073 in California, is a small community that has experienced notable shifts in its housing market over the past decade. This area has maintained a high rate of homeownership, with average home prices showing significant growth, while average rent prices have fluctuated.
The homeownership rate in Palo Cedro has remained consistently high, ranging from 85% to 91% between 2013 and 2022. This stability in homeownership coincides with a substantial increase in average home prices. In 2016, the average home price was $400,148, which rose steadily to $588,698 by 2022, representing a 47% increase over six years. This upward trend in home prices, coupled with the high homeownership rate, suggests a strong demand for property ownership in the area.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.09% to 0.4%), the homeownership rate in Palo Cedro remained above 89%. As interest rates began to rise from 2017 onwards, there was a slight dip in homeownership, reaching its lowest point of 85% in 2019 when the federal interest rate was 2.16%. However, the community quickly rebounded, with homeownership rising back to 91% by 2022, despite the interest rate climbing to 1.68%.
The rental market in Palo Cedro has shown interesting trends. The percentage of renters has fluctuated between 9% and 15% from 2013 to 2022. Average rent prices have generally increased over this period, starting at $1,628 in 2013 and reaching $1,661 in 2022. However, there were notable fluctuations, with the highest average rent of $1,850 recorded in 2018 when the renter percentage was 12%. The population has also varied, from a low of 3,446 in 2018 to a high of 4,133 in 2022, which may have influenced rental demand and prices.
In 2023 and 2024, the housing market in Palo Cedro showed signs of stabilization. The average home price slightly decreased to $568,052 in 2023 and then marginally increased to $568,371 in 2024. This represents a 3.5% decrease from the 2022 peak. Notably, federal interest rates rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which likely influenced the housing market dynamics.
Looking ahead, based on historical trends and current market conditions, we can expect the average home prices in Palo Cedro to continue a modest upward trajectory over the next five years, potentially reaching around $600,000 by 2029. Average rent prices are likely to follow a similar pattern, potentially increasing to approximately $1,800 per month. However, these projections may be influenced by broader economic factors and local market conditions.
In summary, Palo Cedro (96073) has maintained a strong homeownership market with rising average home prices, despite fluctuations in federal interest rates. The rental market, while smaller, has shown resilience with generally increasing average rents. The recent stabilization in home prices, coupled with high interest rates, suggests a potential shift in the market dynamics that will be important to monitor in the coming years.
