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Bluff Park: Rising Home Values and Stable Renter Majority in a Coastal Long Beach Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Bluff Park, a neighborhood in Long Beach, California, offers a unique blend of coastal charm and urban living. This area has experienced notable shifts in homeownership rates and housing costs over the past decade, reflecting broader economic trends and local market dynamics. The ownership percentage in Bluff Park has fluctuated between 34% and 39% from 2013 to 2022, while average home prices have shown a steady upward trajectory. In 2013, the average home price was $445,444, and by 2022, it had risen significantly to $808,354, representing an impressive 81.5% increase over nine years. This substantial growth in home values has not necessarily translated to increased homeownership rates, suggesting that rising prices may be outpacing local income growth or that other factors are influencing buying decisions.
Federal interest rates have played a role in shaping homeownership trends in Bluff Park. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable at 37%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed slight fluctuations, peaking at 39% in 2017-2019 before settling at 36% in 2022. This suggests that while lower interest rates can make mortgages more affordable, other local factors such as housing supply and overall affordability also significantly influence homeownership rates.
Renter percentages in Bluff Park have remained the dominant housing tenure, ranging from 60% to 66% between 2013 and 2022. Average rent prices have shown a consistent upward trend, increasing from $1,530 in 2013 to $1,944 in 2022, a 27% rise over the period. The population has remained relatively stable, fluctuating between 2,929 and 3,205 residents during this time. The high percentage of renters, coupled with rising rent prices, indicates a strong rental market in the area, possibly driven by the neighborhood's desirability and the challenges of homeownership in a high-cost market.
In 2023 and 2024, Bluff Park's housing market showed signs of stabilization. The average home price in 2023 was $798,520, representing a slight decrease from 2022. However, in 2024, prices rebounded to $817,320, indicating continued market resilience. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting housing affordability and market dynamics.
Looking ahead, predictive models suggest that average home prices in Bluff Park may continue to appreciate, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach the $900,000 to $950,000 range, assuming consistent economic conditions and local market factors. Average rent prices are also expected to continue their upward trajectory, potentially reaching $2,200 to $2,400 per month within the same timeframe.
In summary, Bluff Park has demonstrated a resilient and growing housing market over the past decade. The neighborhood has maintained a high proportion of renters despite significant increases in both home values and rent prices. The interplay between federal interest rates, local economic conditions, and housing affordability continues to shape the balance between homeownership and renting in this desirable Long Beach neighborhood.
