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Hawthorne, CA: Rising Home Values and Declining Ownership in the Beach Boys' Hometown
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
Hawthorne, California, located in Los Angeles County, is a diverse city known for its aerospace industry and as the hometown of the Beach Boys. The city has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. From 2013 to 2022, Hawthorne saw a slight decrease in homeownership, while average home and rent prices steadily increased.
The homeownership rate in Hawthorne fluctuated between 2013 and 2022, with an overall downward trend. In 2013, 27% of residents owned their homes, which decreased to 25% by 2022. During this same period, average home prices in Hawthorne rose dramatically. In 2013, the average home price was $392,997, and by 2022, it had more than doubled to $903,509. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made it increasingly difficult for residents to afford homes in the city.
Federal interest rates have played a role in homeownership trends in Hawthorne. From 2013 to 2016, when interest rates were consistently low (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable, hovering around 26-27%. However, as interest rates began to rise in 2017 (1%) and continued to increase through 2019 (2.16%), homeownership rates declined slightly, reaching 24% in 2017 before recovering to 29% in 2019. The sudden drop in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with a slight increase in homeownership to 28%, demonstrating how lower interest rates can make homeownership more accessible.
The renter population in Hawthorne has remained the majority, with the percentage of renters increasing from 73% in 2013 to 75% in 2022. During this period, average rent prices also saw a significant increase. In 2013, the average rent was $991, which rose to $1,639 by 2022, representing a 65% increase over nine years. This trend of rising rent prices coincided with population growth in Hawthorne, from 86,204 in 2013 to 88,444 in 2015, before slightly declining to 84,564 in 2022. The overall population increase and the high percentage of renters likely contributed to the upward pressure on rent prices.
In 2023 and 2024, Hawthorne's housing market showed signs of stabilization. The average home price in 2023 was $879,364, a slight decrease from 2022, while in 2024, it increased marginally to $895,001. Interestingly, federal interest rates rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may have contributed to the slower growth in home prices.
Looking ahead, predictive models suggest that average home prices in Hawthorne may continue to rise, albeit at a slower pace than in previous years. Over the next five years, average home prices could potentially reach around $950,000 to $1 million, assuming steady economic growth and continued demand in the Los Angeles area. Average rent prices are also expected to increase, potentially reaching $1,800 to $2,000 per month within the next five years, driven by the city's high renter population and ongoing housing demand.
In summary, Hawthorne has experienced a notable decline in homeownership rates coupled with substantial increases in both average home prices and rent prices from 2013 to 2022. The relationship between federal interest rates and homeownership rates has been evident, with lower rates generally corresponding to higher homeownership. The city's large renter population and rising housing costs present ongoing challenges for affordability, while recent stabilization in home prices and higher interest rates may impact future market dynamics.
