Loading Content...
Crenshaw's Soaring Home Values: A Decade of Growth in Los Angeles
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Crenshaw, a neighborhood in Los Angeles, California, has experienced significant changes in its housing market from 2013 to 2024. Known for its cultural diversity, Crenshaw has seen notable shifts in homeownership rates, average home prices, and rent prices. This analysis examines these changes and their implications for the community.
From 2013 to 2022, Crenshaw's homeownership rate showed an overall increase despite fluctuations. The rate rose from 30% in 2013 to 32% in 2022, with a temporary dip to 28% in 2017. During this period, average home prices in the neighborhood increased dramatically, rising from $273,776 in 2013 to $748,566 in 2022, a 173% increase over nine years. This trend indicates that the substantial appreciation in home values did not significantly deter homeownership in the area.
The relationship between federal interest rates and homeownership rates in Crenshaw presents an interesting case. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.68%), homeownership rates only increased slightly from 30% to 32%. This suggests that other factors, such as rapidly increasing home prices, may have counteracted the potential positive effect of low interest rates on homeownership.
Renter percentages in Crenshaw have remained high but relatively stable, ranging from 68% to 71% between 2013 and 2022. Average rent prices steadily increased during this period, rising from $1,145 per month in 2013 to $1,375 in 2022, a 20% increase. While significant, this rise in rent prices was not as dramatic as the increase in home prices. The high percentage of renters, combined with rising rent prices, indicates a strong rental market in Crenshaw, possibly driven by the neighborhood's desirability and the high cost of homeownership.
In 2023 and 2024, the housing market in Crenshaw showed signs of stabilization. The average home price in 2023 was $724,730, a slight decrease from 2022, before rebounding to $733,357 in 2024. This period coincided with higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, which may have contributed to the moderation in home price growth.
Looking ahead, predictive models suggest that Crenshaw's housing market will continue to evolve. Over the next five years, average home prices are projected to increase at a more moderate pace, potentially reaching around $800,000 by 2029. Average rent prices are expected to follow a similar trend, potentially rising to approximately $1,600 per month in the same timeframe.
In summary, Crenshaw has experienced substantial growth in both home values and rent prices over the past decade, with homeownership rates showing resilience despite rapidly increasing home prices. The neighborhood's housing market appears to be entering a phase of more moderate growth, balancing between the demands of homeowners and renters in this dynamic Los Angeles community.
