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Average Home Values and Ownership in Zip Code 90031: A Market Tripling in Value
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 90031, located in Los Angeles, California, is a dynamic urban area characterized by a mix of homeowners and renters. Over the past decade, this neighborhood has experienced significant shifts in its housing market, with notable changes in ownership percentages, average home prices, and average rent prices.
The homeownership rate in zip code 90031 has remained relatively stable, fluctuating between 32% and 34% from 2013 to 2022. Despite this consistency, average home prices have shown a dramatic upward trend. In 2010, the average home price was $273,364, which steadily increased to $802,292 by 2022, representing a substantial 193.5% increase over 12 years. This significant appreciation in home values did not correlate with a proportional increase in homeownership rates, suggesting that rising prices may have made it more challenging for renters to transition to homeownership.
Federal interest rates have played a role in shaping homeownership trends in zip code 90031. From 2010 to 2016, interest rates remained historically low, ranging from 0.09% to 0.40%. During this period, homeownership rates held steady at around 32%. As interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), there was a slight increase in homeownership to 33% in 2017 and 2018. However, the dramatic drop in interest rates to 0.08% in 2021 did not significantly alter the homeownership landscape, with the rate remaining at 33% through 2022.
Renter percentages in zip code 90031 have mirrored the homeownership rates, remaining between 66% and 68% from 2013 to 2022. Average rent prices have shown a general upward trend, albeit less dramatic than home prices. In 2013, the average rent was $1,122, which increased to $1,275 by 2022, representing a 13.6% increase over nine years. Notably, there was a significant jump in average rent to $1,412 in 2021, possibly reflecting pandemic-related market disruptions, before slightly decreasing in 2022. The population in the zip code has fluctuated, peaking at 40,784 in 2020 before declining to 38,079 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, the housing market in zip code 90031 continued to evolve. The average home price in 2023 was $801,845, showing a slight decrease from 2022. However, in 2024, the average home price rebounded to $826,403, indicating ongoing market strength. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, predictive models suggest that average home prices in zip code 90031 may continue to rise moderately over the next five years, potentially reaching around $900,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,500 per month within the same timeframe. These projections assume relatively stable economic conditions and continued demand for housing in the Los Angeles area.
In summary, zip code 90031 has experienced substantial growth in both average home prices and average rent prices over the past decade. Despite these increases, homeownership rates have remained relatively stable, suggesting a resilient rental market. The interplay between federal interest rates, housing prices, and ownership rates highlights the complex dynamics of the local real estate market. As the area continues to evolve, it will be crucial to monitor these trends and their impact on the community's housing landscape.
