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La Mirada's Homeownership and Housing Prices: A Decade of Significant Growth
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
La Mirada, a city in California with zip code 90638, has experienced significant changes in its housing market over the past decade. This suburban community, known for its family-friendly atmosphere and proximity to Los Angeles, has seen fluctuations in homeownership rates and housing prices that reflect broader economic trends. The homeownership rate in La Mirada has remained relatively stable, hovering around 77-78% from 2013 to 2021. However, in 2022, there was a slight decrease to 76%. This high rate of homeownership is significantly above the national average, indicating a strong preference for owning rather than renting in this community. Concurrently, average home prices have shown a consistent upward trend. In 2010, the average home price was $393,490, which more than doubled to $836,998 by 2022. This substantial increase in property values has occurred despite the relatively stable homeownership rate, suggesting a robust demand for housing in the area.
The relationship between federal interest rates and homeownership rates in La Mirada presents an interesting picture. From 2010 to 2015, when interest rates were at historic lows (ranging from 0.09% to 0.18%), the homeownership rate remained stable at around 77-78%. This stability continued even as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022. The persistence of high homeownership rates despite rising interest rates may indicate other factors at play, such as strong local economic conditions or a cultural preference for homeownership in the area.
Renter percentages in La Mirada have remained relatively low, fluctuating between 22% and 24% from 2013 to 2022. Average rent prices, however, have shown a steady increase. In 2013, the average rent was $1,651, which rose to $1,854 by 2022, representing a 12.3% increase over nine years. This trend suggests that while the proportion of renters has remained relatively stable, the cost of renting has become more expensive, potentially putting pressure on those who rely on rental housing.
As of 2024, the average home price in La Mirada stands at $874,728, showing a continued upward trend from previous years. This represents a 5.3% increase from the 2023 average of $830,743. Interestingly, the federal interest rate has also risen significantly, reaching 5.33% in 2024, up from 5.02% in 2023. Despite these higher interest rates, home prices have continued to appreciate, suggesting strong underlying demand in the La Mirada housing market.
Looking ahead, predictive models suggest that both average home prices and rent prices in La Mirada are likely to continue their upward trajectory over the next five years. Home prices could potentially reach or exceed $950,000 by 2029, while average rent prices might approach or surpass $2,100 per month. These projections are based on historical trends and assume relatively stable economic conditions.
In summary, La Mirada's housing market is characterized by high homeownership rates, steadily increasing property values, and rising rent prices. The city has demonstrated resilience in maintaining high levels of homeownership despite fluctuations in interest rates and significant increases in home prices. This trend, combined with the consistent rise in both home values and rent prices, suggests a strong and persistent demand for housing in La Mirada, likely driven by its desirable location and community attributes.
