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Zip Code 96121: Rural Milford's Home Values and Ownership Trends Amidst 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 96121, located in Milford, California, is a small rural area with a population that has fluctuated between 105 and 149 residents over the past decade. This zip code has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 96121 has shown considerable variability over the years. In 2013, 75% of residents were homeowners, which increased to 80% in 2014. However, this rate declined to 62% by 2017, before recovering to 74% in 2022. These fluctuations coincide with changes in average home prices, which have shown a consistent upward trend. The average home price in 2010 was $128,991, rising steadily to $311,767 by 2022, representing a remarkable 141.7% increase over 12 years.
The relationship between federal interest rates and homeownership rates in this area is complex. While lower interest rates typically encourage homeownership, the data for zip code 96121 doesn't always follow this pattern. For instance, despite historically low interest rates between 2010 and 2016 (ranging from 0.1% to 0.4%), homeownership rates fluctuated significantly during this period. This suggests that local factors may have a stronger influence on homeownership in this small community than national economic trends.
Renter percentages in zip code 96121 have also varied over time, generally moving inversely to homeownership rates. The renter population peaked at 36% in 2017 and 2019, coinciding with periods of lower homeownership. Average rent prices have shown some volatility, with the highest recorded average rent of $1,101 in 2013, dropping to $851 in 2015, and then gradually increasing to $960 by 2022. These fluctuations in rent prices and renter percentages may be influenced by the small population size, where even minor changes can result in significant percentage shifts.
In 2023 and 2024, we observe a slight downturn in average home prices in zip code 96121. The average home price decreased from $311,767 in 2022 to $300,252 in 2023, and further to $287,735 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 may be contributing to the cooling of home prices in the area.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for the next five years. If the current pattern continues, we might expect average home prices in zip code 96121 to stabilize or potentially decrease slightly in the short term, influenced by the higher interest rates. However, given the long-term appreciation trend, prices could resume a modest upward trajectory in the latter part of the five-year period. Average rent prices may continue to fluctuate but are likely to maintain a gradual upward trend, potentially reaching around $1,050 to $1,100 by 2029.
In summary, zip code 96121 has demonstrated resilience in its housing market despite its small size. The area has seen substantial appreciation in average home values over the past decade, with recent signs of market cooling coinciding with rising interest rates. Homeownership rates have remained relatively high, though subject to fluctuations. The interplay between home prices, rent rates, and occupancy types reflects the dynamic nature of this small California community's housing market.
