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Alamitos Heights: Rising Home Values and Shifting Ownership in a Coastal Long Beach Neighborhood
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
Alamitos Heights, a vibrant neighborhood in Long Beach, California, has experienced significant changes in homeownership rates and property values over the past decade. This coastal area, known for its scenic views, has seen a general trend of decreasing homeownership coupled with substantial increases in average home prices and rent costs. The homeownership rate in Alamitos Heights has shown a gradual decline from 63% in 2013 to 51% in 2022. During this same period, average home prices rose dramatically from $530,054 to $1,097,532, representing a 107% increase. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents.
Federal interest rates have played a role in homeownership trends in Alamitos Heights. From 2013 to 2016, historically low interest rates coincided with relatively stable homeownership rates. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a more pronounced decline. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in Alamitos Heights has grown as homeownership has declined, increasing from 37% in 2013 to 49% in 2022. This shift coincided with a significant rise in average rent prices, from $1,574 in 2013 to $2,041 in 2022, a 29.7% increase. The growing renter population and rising rent prices suggest a strong demand for rental properties in the area, possibly driven by those priced out of the homeownership market.
Recent data shows that the average home price in Alamitos Heights continued to rise, reaching $1,116,526 in 2023 and $1,167,513 in 2024, a 6.4% increase from 2022 to 2024. This price growth occurred despite significant increases in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. The continued appreciation of property values despite higher interest rates indicates strong underlying demand for properties in this desirable neighborhood.
Predictive models forecast continued growth in both average home prices and average rent prices in Alamitos Heights over the next five years. Average home prices could potentially reach $1.4 million by 2029, while average rent prices are projected to exceed $2,500 per month within the same timeframe. These projections assume relatively stable economic conditions and no major market disruptions.
In conclusion, Alamitos Heights has experienced a notable shift towards a renter-majority population over the past decade, driven by rapidly appreciating home values and fluctuating interest rates. Despite recent increases in interest rates, the neighborhood's property values continue to rise, reflecting its enduring appeal. The coming years are likely to see further increases in both home prices and rents, potentially reshaping the demographic makeup of this Long Beach community.
