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Average Home Values and Ownership in Zip Code 91724: A Decade of Change in Covina, 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 91724, located in Covina, California, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown a gradual shift towards renting, with a slight decrease in homeownership rates accompanied by substantial increases in both average home prices and average rent prices. The homeownership rate in zip code 91724 has seen a modest decline from 70% in 2013 to 67% in 2022. During this same period, average home prices have shown a remarkable increase. In 2013, the average home price was $405,998, which rose steadily to reach $832,996 by 2022, representing a 105% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in this area. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relative stability in homeownership rates, which fluctuated between 68% and 70%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a gradual decline in homeownership rates to 67%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in zip code 91724 has grown from 29% in 2013 to 33% in 2022. Correspondingly, average rent prices have increased from $1,691 in 2013 to $1,858 in 2022, a 9.9% rise. This growth in both renter percentage and average rent prices could be attributed to the increasing population, which grew from 27,904 in 2013 to 31,264 in 2022, creating more demand for rental properties.
In 2023, the average home price in zip code 91724 slightly decreased to $822,925, marking a 1.2% decline from the previous year. However, in 2024, the average home price has rebounded to $860,911, showing a 4.6% increase from 2023. Notably, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, our predictive models forecast a continued upward trend in both average home prices and average rent prices over the next five years. Average home prices are projected to surpass $1 million by 2029, while average rent prices are expected to exceed $2,200 per month. These projections are based on historical trends and current market conditions.
In summary, zip code 91724 has experienced a gradual shift towards renting, with homeownership rates declining slightly as average home prices have more than doubled since 2013. The area has also seen steady increases in average rent prices and population. The recent spike in federal interest rates may further influence these trends, potentially making homeownership more challenging and increasing demand for rental properties. As the area continues to evolve, it's likely to see ongoing changes in its housing market dynamics.
