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Average Home Values and Ownership in Zip Code 91401: A Decade of Growth and Stability
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 91401, located in Los Angeles, California, is a dynamic urban area that has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, revealing interesting patterns and correlations. The homeownership rate in zip code 91401 has remained relatively stable, fluctuating between 33% and 35% from 2013 to 2022. Despite this stability, average home prices have shown a dramatic increase. In 2013, the average home price was $500,970, which steadily rose to $1,132,012 by 2022, representing a remarkable 126% increase over nine years. This substantial growth in home values did not significantly impact homeownership rates, suggesting that other factors may be influencing residents' ability or desire to purchase homes.
Federal interest rates have played a role in shaping the housing market in zip code 91401. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.40%), the homeownership rate remained steady at around 34%. As interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), there was no significant change in homeownership rates, which stayed at 34%. This suggests that in this particular zip code, factors other than interest rates may have a stronger influence on homeownership decisions.
The renter population in zip code 91401 has consistently made up the majority, ranging from 65% to 67% between 2013 and 2022. Average rent prices have shown a steady increase during this period, rising from $1,241 in 2013 to $1,495 in 2022, a 20.5% increase. The population in the zip code has fluctuated, reaching a peak of 43,309 in 2018 before settling at 41,772 in 2022. Despite these population changes, the high percentage of renters has remained constant, indicating a strong rental market in the area.
In 2023, the average home price in zip code 91401 slightly decreased to $1,124,238 from the previous year's $1,132,012. However, in 2024, the average home price has risen again to $1,146,823. This recent uptick occurs despite the federal interest rate increasing to 5.33% in 2024, which is the highest it has been in over a decade. This suggests that demand for housing in this zip code remains strong, even in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 91401 will continue to rise, albeit at a potentially slower rate than seen in the past decade. The average home price could reach approximately $1,350,000 by 2029. For rent prices, the upward trend is likely to continue, with average rents potentially reaching around $1,800 per month in the next five years.
In summary, zip code 91401 has demonstrated resilience in its housing market, with consistently high renter occupancy and steadily increasing property values. Despite fluctuations in population and rising interest rates, the area has maintained its appeal, as evidenced by the continued growth in both home prices and rents. The stability in homeownership rates, coupled with rising property values, suggests a complex interplay of factors influencing the local real estate market beyond just economic indicators.
