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Beverly Hills: Soaring Home Values and Stable Ownership in a Prestigious 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
Beverly Hills, California, a renowned city in Los Angeles County, is known for its luxury, glamour, and high-end shopping districts. This affluent enclave, home to many celebrities, has experienced notable changes in homeownership rates, average home prices, and average rent prices over the past decade. From 2013 to 2022, Beverly Hills saw a slight increase in homeownership rates, rising from 42% to 43%. During this period, average home prices experienced substantial growth, soaring from $1,751,694 in 2013 to $3,973,183 in 2022, representing a remarkable 126.8% increase. This trend suggests a strong correlation between rising property values and a modest uptick in homeownership.
The relationship between federal interest rates and homeownership rates in Beverly Hills presents an intriguing dynamic. Despite historically low interest rates between 2013 and 2021, ranging from 0.08% to 1.83%, homeownership rates remained relatively stable, only increasing by 1 percentage point. This stability in homeownership, despite favorable borrowing conditions, may be attributed to the city's already high property values and the exclusive nature of its real estate market.
Renter percentages in Beverly Hills showed a slight increase from 57% in 2013 to 58% in 2021, before decreasing to 57% in 2022. Concurrently, average rent prices rose significantly, from $1,864 in 2013 to $2,500 in 2022, marking a 34.1% increase. This trend indicates that despite rising rental costs, the demand for rental properties in Beverly Hills remained strong, possibly due to the city's desirable location and lifestyle offerings.
In 2023 and 2024, Beverly Hills experienced a slight dip in average home prices, with values of $3,795,096 and $3,730,902 respectively. This represents a 6.1% decrease from the peak in 2022. Interestingly, this coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to the softening of home prices by reducing affordability for potential buyers.
Looking ahead, predictive models suggest that average home prices in Beverly Hills may stabilize or experience modest growth over the next five years, potentially reaching around $4.2 million by 2029. Average rent prices are projected to continue their upward trajectory, possibly surpassing $3,000 per month within the same timeframe.
In summary, Beverly Hills has demonstrated resilience in its real estate market, with steady homeownership rates despite significant increases in property values. The city's rental market has remained robust, with rising average rents and a consistent renter population. Recent data shows a slight cooling in home prices, possibly influenced by rising interest rates. However, the long-term outlook for both home values and rental prices in Beverly Hills remains positive, reflecting the city's enduring appeal and strong demand for housing in this prestigious location.
