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La Pasada's Housing Market: Soaring Home Values and Shifting Ownership in Cathedral City
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 Pasada, a neighborhood in Cathedral City, California, has undergone significant changes in its housing market over the past decade. The area has experienced notable shifts in homeownership rates, average home prices, and rental trends, reflecting broader economic and demographic changes. From 2013 to 2022, La Pasada's homeownership rate fluctuated considerably. Starting at 67% in 2013, it peaked at 71% in 2018 before declining sharply to 51% in 2022. Concurrently, average home prices in the neighborhood saw a substantial increase. The average home price rose from $229,532 in 2013 to $565,186 in 2022, representing a 146% increase over nine years. The relationship between federal interest rates and homeownership rates in La Pasada shows some correlation. During periods of historically low interest rates between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively high, between 64% and 68%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates in La Pasada showed a declining trend, dropping to 51% by 2022.
Renter percentages and average rent prices in La Pasada have also shown interesting trends. The percentage of renters increased from 32% in 2013 to 49% in 2022. Correspondingly, average rent prices rose significantly during this period, from $1,088 in 2013 to $2,065 in 2022, representing a 90% increase. This trend coincided with population growth from 650 in 2013 to 1,167 in 2022, suggesting increased demand for rental properties in the area. As of 2024, the average home price in La Pasada stands at $579,056, continuing the upward trend from previous years. The federal interest rate for 2024 is 5.33%, significantly higher than rates seen in the early 2020s. This increase in interest rates could potentially impact homeownership rates and housing affordability in the coming years. Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in La Pasada will continue to rise, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the shift towards renting observed in recent years. In summary, La Pasada has transformed from a predominantly owner-occupied neighborhood to one with a more balanced mix of owners and renters. This change has occurred alongside substantial increases in both average home prices and rent prices. The interplay between federal interest rates, housing affordability, and population growth has been a key factor in shaping these trends and will likely continue to influence the neighborhood's housing market in the coming years.
