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Average Home Values and Ownership in Zip Code 90505: A Decade of Change in Torrance, California
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 90505, located in Torrance, California, is a dynamic area with a population of 35,404 as of 2022. This suburban locale has experienced notable shifts in its housing market over the past decade, reflecting broader economic trends and local developments. The homeownership rate in zip code 90505 has shown a slight decline from 2013 to 2022. In 2013, 57% of residents owned their homes, while by 2022, this figure had decreased to 55%. Conversely, the percentage of renters increased from 43% to 45% during the same period. This shift coincides with significant changes in average home prices and rent costs.
Average home prices in the 90505 zip code have seen substantial growth. In 2013, the average home price was $693,385. By 2022, this figure had nearly doubled to $1,347,592, representing a 94% increase over nine years. This rapid appreciation in home values has likely contributed to the slight decrease in homeownership rates, as higher prices may have made purchasing a home more challenging for some residents.
Federal interest rates have played a role in shaping homeownership trends. From 2013 to 2016, interest rates remained exceptionally low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable at 55-57%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observe a slight downward trend in homeownership rates, suggesting that higher borrowing costs may have deterred some potential buyers.
Renter percentages have shown a modest increase, rising from 43% in 2013 to 45% in 2022. This trend aligns with the growth in average rent prices, which have risen steadily over the years. In 2013, the average rent was $1,653 per month. By 2022, it had increased to $2,033, representing a 23% rise over nine years. The increase in rent prices, while significant, has been less dramatic than the surge in home prices, potentially making renting a more attractive option for some residents.
As of 2024, the average home price in zip code 90505 stands at $1,395,544, showing a continued upward trajectory from previous years. This represents a 4.9% increase from the 2023 average of $1,330,563. Notably, federal interest rates have also risen significantly, reaching 5.33% in 2024, up from 5.02% in 2023. These higher interest rates may impact future homebuying trends in the area.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and rent costs for zip code 90505 over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $1.6 million by 2029. Average rent prices may continue to increase as well, possibly surpassing $2,500 per month within the same timeframe. However, the rate of increase may moderate compared to the rapid growth seen in recent years.
In summary, zip code 90505 has experienced a slight shift towards renting, with a corresponding decrease in homeownership rates. This trend has occurred alongside substantial increases in both average home prices and rent costs. The interplay between rising property values, increasing rent prices, and fluctuating interest rates has shaped the housing landscape in this Torrance zip code, reflecting broader economic trends and local market dynamics.
