The percentage of renters in Pasadena Hills has increased from 58% in 2013 to 61% in 2022. This rise in the renter population corresponds with an increase in average rent prices. In 2013, the average rent was $724, which increased to $813 by 2022, a 12.3% rise. The growth in the renter population and rent prices may be attributed to the city's overall population growth, which increased from 1,217 in 2013 to 1,207 in 2022, despite some fluctuations in between.

In 2023, the average home price in Pasadena Hills reached $266,137, a 4.4% increase from 2022. However, in 2024, there was a slight decrease to $264,203. This recent trend coincides with higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting home buying affordability and market dynamics.

Looking ahead, predictive models suggest that average home prices in Pasadena Hills may continue to rise moderately over the next five years, albeit at a slower pace than observed in the previous decade. This forecast takes into account the recent leveling off of prices and the current higher interest rate environment. Average rent prices are also expected to increase, driven by the growing renter population and overall demand for housing in the area.

In summary, Pasadena Hills has experienced a significant shift towards a renter-majority population, with homeownership rates declining despite periods of low interest rates. The substantial increase in average home prices over the past decade has likely contributed to this trend. The rental market has grown both in terms of population and prices, reflecting the changing dynamics of the city's housing landscape. These trends, combined with recent market adjustments and higher interest rates, suggest a more moderate growth trajectory for both home prices and rents in the coming years.