Loading Content...
Home Values and Ownership Trends in Zip Code 90248: A Decade of Significant Changes
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 90248, located in Los Angeles, California, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual shift towards renting, coupled with substantial increases in both home values and rental costs.
The homeownership rate in zip code 90248 has shown a consistent downward trend from 2013 to 2022. In 2013, 70% of housing units were owner-occupied. By 2022, this figure had decreased to 64%, representing a 6 percentage point decline over nine years. Concurrently, average home prices in the area have risen dramatically. In 2013, the average home price was $341,283. By 2022, it had more than doubled to $776,039, an increase of 127.4% over the period. This inverse relationship suggests that rising home prices may be making homeownership less attainable for residents in the area.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relative stability in homeownership rates (around 69-70%). As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates declined more rapidly, dropping from 68% to 65%. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not reverse the downward trend in homeownership, possibly due to the substantial increase in home prices during this period.
The percentage of renters in zip code 90248 has increased from 30% in 2013 to 36% in 2022, mirroring the decline in homeownership. Average rent prices have also risen, though not as dramatically as home prices. In 2013, the average rent was $1,312. By 2022, it had increased to $1,427, a 8.8% rise. The population of the zip code grew from 13,363 in 2013 to 14,857 in 2022, a 11.2% increase. This population growth, combined with rising home prices, may have contributed to the increased demand for rentals and the subsequent rise in rental costs.
In 2023, the average home price in zip code 90248 reached $779,899, a slight increase from 2022. The federal interest rate in 2023 was 5.02%, significantly higher than previous years. Moving into 2024, the average home price has continued to rise, reaching $807,798. The federal interest rate for 2024 stands at 5.33%, the highest in over a decade. These high interest rates may further impact homeownership trends in the area.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in zip code 90248 will continue to rise over the next five years, potentially reaching around $900,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,600 by 2029. However, the rate of increase may slow down due to the high interest rates and potential market corrections.
In summary, zip code 90248 has experienced a significant shift towards renting, driven by rapidly increasing home prices and fluctuating interest rates. The area has seen substantial property value appreciation, making homeownership increasingly challenging for many residents. As the population continues to grow and housing costs rise, the rental market is likely to remain strong, with both homeownership rates and rental prices continuing to evolve in response to these economic pressures.
