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Average Home Values and Ownership in El Segundo Zip Code 90245: A Decade of Growth in the Aerospace Hub
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
El Segundo, California, zip code 90245, is a vibrant coastal city known for its blend of residential neighborhoods and thriving business district. This area has experienced significant fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in El Segundo has shown modest variations, ranging from 41% to 45% between 2013 and 2022. Despite these fluctuations, average home prices have demonstrated a strong upward trend. In 2013, the average home price was $751,035, which more than doubled to $1,701,729 by 2022, representing a remarkable 126.6% increase over this period. This substantial growth in home values occurred despite relatively stable homeownership rates, suggesting strong demand and limited supply in the area.
Federal interest rates have played a significant role in shaping homeownership trends in El Segundo. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership in the zip code increased slightly from 42% to 44%. As interest rates began to rise more steeply from 2017 onwards, reaching 1.68% by 2022, homeownership rates remained relatively stable at around 42-44%. This stability in homeownership, despite rising interest rates, indicates the strong desirability of El Segundo as a place to live and invest.
Renter occupancy in El Segundo has consistently outpaced homeownership, ranging from 55% to 59% between 2013 and 2022. The average rent prices have shown a steady increase over this period, rising from $1,656 in 2013 to $1,986 in 2022, a 20% increase. This growth in rent prices, while significant, has been less dramatic than the surge in home values. The population of El Segundo has remained relatively stable during this period, with 16,798 residents in 2013 and 17,107 in 2022, suggesting that the rising rent prices are more likely due to the overall increase in property values and demand for housing in the area rather than population growth.
In 2023 and 2024, El Segundo's housing market showed signs of stabilization. The average home price in 2023 was $1,654,560, a slight decrease from the 2022 peak. However, 2024 saw a modest rebound to $1,687,243. Interestingly, this occurred against a backdrop of significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher rates typically cool housing markets, yet El Segundo's resilience suggests strong underlying demand for properties in this zip code.
Looking ahead, predictive models suggest that average home prices in El Segundo may continue to appreciate, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach the $1.8 million to $2 million range, assuming economic conditions remain stable. Average rent prices are also expected to continue their upward trajectory, potentially reaching $2,200 to $2,400 per month within the same timeframe.
In summary, El Segundo's 90245 zip code has demonstrated robust growth in both home values and rent prices over the past decade, outpacing many other areas. The stability in homeownership rates, despite significant price appreciation and fluctuating interest rates, underscores the area's strong appeal. As we look to the future, El Segundo's real estate market is poised for continued growth, albeit at a more measured pace, reflecting its enduring attractiveness as a residential and commercial hub in Southern California.
