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Average Home Values and Ownership Trends in Zip Code 90077: A Decade of Luxury Real Estate Dynamics
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 90077, located in Los Angeles, California, is a prestigious area known for its luxurious properties and affluent residents. This neighborhood has experienced significant fluctuations in homeownership rates and housing prices over the past decade, with a general trend towards increasing property values and a slight decrease in owner-occupied homes.
The ownership percentage in zip code 90077 has shown a slight decline from 2013 to 2022, dropping from 87% to 85%. During this same period, average home prices have experienced substantial growth. In 2013, the average home price was $1,348,450, which more than doubled to $3,047,166 by 2022. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making it more challenging for new buyers to enter the market.
Federal interest rates have played a role in homeownership trends in this area. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.4%), homeownership remained relatively stable at around 84-87%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decrease in homeownership to 85%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 90077 have shown slight fluctuations, ranging from 13% to 17% between 2013 and 2022. Interestingly, average rent prices have not consistently followed the same pattern as homeownership rates. In 2013, the average rent was $2,047, which increased to $2,857 by 2018, representing a 39.6% increase. However, from 2018 to 2022, average rent prices experienced some volatility, ultimately settling at $2,502 in 2022. This represents a 12.4% decrease from the 2018 peak but still a 22.2% increase from 2013 levels. The population in the area has remained relatively stable during this period, ranging from about 8,500 to 9,300 residents, which may have contributed to the moderate fluctuations in rental demand and prices.
Looking at the most recent data, the average home price in zip code 90077 slightly decreased from $3,047,166 in 2022 to $3,026,936 in 2023, representing a 0.7% decline. However, in 2024, the average home price rebounded to $3,049,716, showing a 0.8% increase from the previous year. Concurrently, federal interest rates rose significantly from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. This substantial increase in interest rates may impact future homeownership trends and property values in the area.
Based on the historical trends and recent data, we can project potential 5-year trends for average home and rent prices in zip code 90077. Average home prices are likely to continue their upward trajectory, albeit at a potentially slower pace due to higher interest rates. We might expect average home prices to reach approximately $3.5 million by 2029. For average rent prices, the trend suggests a moderate increase, potentially reaching around $2,800 to $3,000 per month by 2029, assuming economic conditions remain stable and population growth continues at a similar rate.
In summary, zip code 90077 has experienced a slight decrease in homeownership rates alongside significant growth in average home prices over the past decade. Rental markets have shown more volatility, with periods of both increase and decrease in average rents. The recent sharp rise in interest rates may influence future trends, potentially slowing down the rate of home price appreciation and affecting homeownership rates in the coming years.
