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Home Values and Ownership in Zip Code 90744: Port of Los Angeles Neighborhood Sees Significant Shifts
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 90744, located in Los Angeles, California, has experienced significant shifts in homeownership rates and housing prices over the past decade. This area has seen a general trend of decreasing homeownership and increasing average home and rent prices, reflecting broader changes in the Los Angeles real estate market.
The homeownership rate in zip code 90744 has steadily declined from 41% in 2013 to 35% in 2022. During this same period, average home prices have shown a substantial increase. In 2013, the average home price was $263,552, which rose dramatically to $646,230 by 2022, representing a 145% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for residents in this area.
Federal interest rates have played a role in shaping homeownership trends in zip code 90744. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable at around 40-41%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply, dropping to 35% by 2022. This trend aligns with the general principle that higher interest rates can make mortgage financing less affordable, potentially discouraging homeownership.
As homeownership rates decreased, the percentage of renters in zip code 90744 increased from 59% in 2013 to 65% in 2022. Concurrently, average rent prices showed an upward trend, albeit less dramatic than home prices. The average rent rose from $1,141 in 2013 to $1,175 in 2022, an increase of about 3%. It's worth noting that the population in this zip code has remained relatively stable during this period, fluctuating between 55,000 and 57,000 residents, which suggests that the increasing renter population is primarily due to the shift from homeownership to renting rather than a significant influx of new residents.
In 2023 and 2024, the housing market in zip code 90744 continued to evolve. The average home price reached $652,024 in 2023 and further increased to $686,742 in 2024, showing a continued upward trajectory. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in zip code 90744 may continue to rise over the next five years, potentially reaching around $800,000 by 2029. Average rent prices are also likely to increase, possibly reaching $1,400 per month in the same timeframe. However, these projections are subject to various economic factors and market dynamics.
In summary, zip code 90744 has experienced a notable decline in homeownership rates coupled with substantial increases in average home prices over the past decade. The rental market has grown, with a higher percentage of renters and modest increases in average rent prices. The recent spike in interest rates and continued rise in home prices suggest that affordability challenges may persist, potentially further shifting the balance towards renting in this Los Angeles neighborhood.
