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Average Home Values and Ownership in Zip Code 90058: A Study of Vernon's Unique Housing Market
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 90058, located in Vernon, California, is an industrial area known for its high concentration of manufacturing and warehousing facilities. Over the past decade, this zip code has experienced notable fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The ownership percentage in zip code 90058 has shown slight variations over the years, ranging from 16% to 20% between 2013 and 2022. Meanwhile, average home prices have demonstrated a significant upward trend. In 2010, the average home price was $163,041, which steadily increased to $548,334 by 2022, representing a substantial 236% increase over this period. This growth in home prices occurred despite relatively stable homeownership rates, suggesting that other factors, such as investment interest or limited housing supply, may have driven price appreciation.
Federal interest rates have played a role in shaping homeownership trends in zip code 90058. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates remained relatively stable at 18% and 19%. This stability in homeownership, despite favorable borrowing conditions, may indicate that other local factors, such as the predominantly industrial nature of the area, were influencing housing decisions.
Renter percentages in zip code 90058 have consistently been high, ranging from 80% to 84% between 2013 and 2022. Average rent prices have shown an overall increasing trend, albeit with some fluctuations. In 2013, the average rent was $902, which rose to $1,206 by 2021, representing a 34% increase. However, there was a slight decrease to $1,008 in 2022. The high percentage of renters in this zip code could be attributed to its industrial character, potentially attracting a transient workforce or those preferring the flexibility of renting.
In 2023 and 2024, average home prices in zip code 90058 continued their upward trajectory, reaching $563,287 in 2023 and $579,129 in 2024. This represents a 2.7% and 2.8% year-over-year increase respectively. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the near-zero rates of the early 2020s.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in zip code 90058 will continue to appreciate, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach around $650,000 to $700,000. Average rent prices are also expected to rise, potentially reaching $1,300 to $1,400 per month within the same timeframe, assuming consistent growth patterns and barring any significant economic shifts.
In summary, zip code 90058 has experienced substantial growth in average home prices over the past decade, despite maintaining a consistently high percentage of renters. The area's unique industrial character appears to influence its housing market dynamics, with homeownership rates remaining relatively stable despite fluctuations in interest rates and housing prices. The continued rise in both home prices and rents suggests ongoing demand for housing in this area, likely driven by its strategic location and economic significance within Vernon.
