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Zip Code 96134: Rising Home Values and Ownership Trends in Rural Newell, 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 96134, located in Newell, California, has experienced significant shifts in homeownership rates and housing prices over the past decade. This rural area, covering 487.32 square miles, has seen a notable increase in homeownership alongside fluctuating property values and rent prices.
The ownership percentage in zip code 96134 has shown a remarkable upward trend, rising from 55% in 2013 to 77% in 2022. This substantial increase in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $71,857, which steadily climbed to $153,484 by 2022, representing a 113.6% increase over nine years. This trend suggests a strong correlation between rising home values and increased homeownership rates in the area.
The relationship between federal interest rates and homeownership rates in zip code 96134 appears to defy conventional wisdom. Despite interest rates rising from 0.11% in 2013 to 1.68% in 2022, homeownership rates continued to climb. This unusual trend might be attributed to other local factors influencing the housing market in this specific area.
As homeownership rates increased, the percentage of renters in zip code 96134 naturally decreased, falling from 45% in 2013 to 23% in 2022. Interestingly, average rent prices showed only modest growth during this period, increasing from $596 in 2013 to $679 in 2022, a 13.9% rise. This relatively slow growth in rent prices, compared to the rapid increase in home values, may have contributed to the shift towards homeownership.
Looking at more recent data, the average home price in zip code 96134 for 2023 was $153,480, showing a slight decrease from 2022. However, in 2024, the average home price has increased to $155,092. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 96134 to continue their upward trajectory, potentially reaching around $170,000 by 2029. Average rent prices are expected to follow a similar pattern, possibly increasing to approximately $750 per month. However, the rate of increase for both metrics may slow down compared to the rapid growth observed in the past decade.
In summary, zip code 96134 has experienced a remarkable increase in homeownership rates from 2013 to 2022, accompanied by significant growth in average home prices. Despite rising federal interest rates, the area has maintained a strong trend towards homeownership. The coming years may see continued, albeit slower, growth in both home values and rent prices, potentially influenced by the recent spike in interest rates.
