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Home Values and Ownership in Zip Code 90042: A Decade of Resilience Amidst Rising Prices
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 90042, located in Los Angeles, California, has experienced significant changes in its real estate landscape over the past decade. This area, known for its diverse neighborhoods and proximity to downtown Los Angeles, has seen fluctuations in homeownership rates and substantial increases in both average home prices and average rent prices.
The homeownership rate in zip code 90042 has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate was 43%, and by 2022, it had increased marginally to 45%. During this period, average home prices saw a dramatic rise. In 2013, the average home price was $387,528, and by 2022, it had skyrocketed to $1,009,685, representing a 160% increase over nine years. This substantial growth in home prices, despite relatively stable homeownership rates, suggests that while property values have appreciated significantly, it hasn't necessarily translated to a higher proportion of homeowners in the area.
Federal interest rates have played a role in shaping homeownership trends in zip code 90042. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained steady at 43%. As interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), there was a slight increase in homeownership to 44%. Interestingly, even as interest rates dropped to near-zero levels in 2020 and 2021, homeownership increased to 46% and 45% respectively, possibly due to pandemic-related factors and increased desire for space.
The renter population in zip code 90042 has also seen changes over the years. In 2013, 57% of residents were renters, and this percentage remained relatively stable, reaching 55% by 2022. During this period, average rent prices increased significantly. In 2013, the average rent was $1,302, and by 2022, it had risen to $1,508, an increase of about 15.8%. This increase in rent prices, coupled with a slight decrease in the percentage of renters, suggests that while rental costs have gone up, it hasn't dramatically altered the proportion of renters in the area.
Looking at the most recent data, in 2023, the average home price in zip code 90042 was $1,001,657, showing a slight decrease from 2022. However, in 2024, the average home price has increased to $1,024,004, indicating a rebound in the market. Notably, interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends and affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 90042 will continue to rise, albeit at a more moderate pace. Based on historical data and current market conditions, we project average home prices could reach approximately $1,200,000 by 2029. For average rent prices, the forecast suggests a continued upward trend, potentially reaching around $1,800 per month by 2029, assuming current economic conditions and housing demand persist.
In summary, zip code 90042 has experienced significant appreciation in both home values and rent prices over the past decade, with homeownership rates showing slight increases. The area has demonstrated resilience in its real estate market, maintaining a balance between owners and renters despite substantial price increases. The recent uptick in interest rates and the continued rise in housing costs will likely play crucial roles in shaping the future real estate landscape of this Los Angeles neighborhood.
