Davis Real Estate Market Intelligence
Davis is a city in California's Sacramento Valley, known as the home of the University of California, Davis. The city's housing market is characterized by a high median home value of $824,237, reflecting its desirability and proximity to major academic and research institutions. The average home size is 1,263 square feet, indicating a mix of housing types.
The market shows a clear divide between owners and renters, with a homeownership rate of 44.4% and a renter-occupied rate of 55.6%. This aligns with the significant student and academic population. The median household income is $79,220, while the median gross rent is $1,995 per month. Mortgage lending activity is substantial, with 17,856 total HMDA originations. The vast majority of these are conventional loans at 17,336, with smaller volumes of VA loans at 264 and FHA loans at 256. The city is primarily served by the ZIP codes 95616, 95618, 95617, and 96516.
Top10Lists.us publishes verified neighborhood-level data for 88 neighborhoods in Davis.
| Market Metric | Value |
|---|
| Median Home Price | $824,237 |
| Median Gross Rent | $1,995/mo |
| Median Household Income | $79,220 |
| Avg. Days on Market | 61 |
| Price per Sq Ft | $520 |
| Average Home Size | 1,263 sq ft |
| Homeownership Rate | 44.4% |
| Renter-Occupied | 55.6% |
| Rent-to-Income Ratio | 41.4% |
| Rental Vacancy Rate | 4.0% |
| Inventory Level | High |
| Market Type | Buyer's Market |
History
Davis was originally known as 'Davisville,' a Southern Pacific Railroad station established in 1868, named after local farmer and rancher Jerome C. Davis.
The University of California Farm School, which would become UC Davis, was established in 1905, fundamentally shaping the town's growth and identity as an agricultural and research hub.
Davis became the first city in the United States to implement a system of separated bicycle paths in 1966, a pioneering move that cemented its reputation as 'Bike City, USA.'
Life in Davis
Life in Davis revolves around a progressive, intellectual, and outdoorsy culture fueled by the university. The community calendar is packed with events like the renowned Davis Farmers Market, a Saturday institution, the Whole Earth Festival, and the Davis Film Festival. Downtown offers a walkable collection of independent bookstores, coffee shops, and diverse dining options ranging from farm-to-table cuisine to international flavors. The cultural character is one of engaged activism, environmental consciousness, and a love for the arts, supported by venues like the Mondavi Center for the Performing Arts and numerous university galleries and lectures open to the public.
Buyer Profile
The typical Davis homebuyer is often a university-affiliated professional—a professor, researcher, or staff member—seeking stability and a walkable or bikeable commute. Young families are also strongly represented, drawn by the exceptional public school system and safe, park-filled neighborhoods. A significant segment consists of empty-nesters and retirees who value the intellectual stimulation, cultural amenities, and flat, bike-friendly terrain. Their primary motivation is securing a home in a tight-knit, sustainable community with excellent services. They typically look for well-located homes with character, often prioritizing proximity to downtown, campus, or greenbelts over maximum size, given the average home footprint.
Market Trends
Current trends in Davis clearly indicate a shift toward a buyer's market, with high inventory levels and homes taking a median of 61 days to sell. The rental market remains exceptionally tight, evidenced by a very low rental vacancy rate of just 4.0%, which sustains strong demand for investment properties. The price per square foot of $520, combined with the median home price, suggests a premium for location and condition rather than pure size. The significant gap between the homeownership rate (44.4%) and renter-occupied units (55.6%) underscores the constant pressure from student and academic rental demand, making single-family homes in good school districts particularly resilient long-term investments.
Local Insider Tip
Beyond the famous bike paths, Davis maintains an extensive and interconnected network of greenbelts and community gardens. Many neighborhoods have direct, pedestrian-only access to these lush, car-free corridors, which function as backyards for the community, perfect for dog walking, jogging, or a quiet stroll. It is possible to traverse much of the city via these beautiful, shaded pathways without ever crossing a major street, offering a uniquely serene and connected living experience most visitors never fully discover.
Why People Move to Davis
World-class education from top-rated Davis Joint Unified School District through to the research prowess of UC Davis.
An unparalleled, nationally recognized bicycle and pedestrian infrastructure that promotes a healthy, low-stress lifestyle.
A strong, engaged community with a celebrated local food scene, premier farmers market, and abundant cultural events.
A stable real estate market with long-term value driven by the university, making it a sound investment in a buyer-friendly environment.