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Rising Home Values and Ownership in Los Angeles Zip Code 90043: A Decade of 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
Zip code 90043, located in Los Angeles, California, has experienced significant shifts in homeownership rates and property values over the past decade. This area has seen a general trend towards increased homeownership and rising average home prices, with some fluctuations in average rent prices.
The ownership percentage in zip code 90043 has shown a notable increase from 2013 to 2022. In 2013, the homeownership rate was 49%, and it rose to 52% by 2022. This upward trend coincided with a substantial increase in average home prices. In 2013, the average home price was $320,214, which more than doubled to $889,991 by 2022. This remarkable 177.9% increase in average home prices over nine years indicates a strong correlation between rising property values and growing homeownership rates in the area.
The relationship between federal interest rates and homeownership rates in zip code 90043 appears to follow the general trend of lower interest rates encouraging homeownership. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), the homeownership rate increased from 49% to 50%. As interest rates began to rise from 2017 to 2019 (1% to 2.16%), homeownership continued to increase, reaching 55% in 2019, possibly due to anticipation of future rate hikes.
Renter percentages in zip code 90043 have shown an inverse relationship to homeownership rates, decreasing from 51% in 2013 to 48% in 2022. During this period, average rent prices experienced fluctuations but generally trended upward. In 2013, the average rent was $1,330, which increased to $1,531 by 2022, representing a 15.1% rise. It's worth noting that despite the overall increase, there were some years of decline, such as 2015 when the average rent dropped to $1,302.
Looking at the most recent data, the average home price in zip code 90043 for 2023 was $870,969, showing a slight decrease from 2022. However, the projected average home price for 2024 is $893,299, indicating a potential rebound. The federal interest rate for 2023 was 5.02%, and it increased to 5.33% in 2024, which may impact future homeownership trends.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 90043 to continue their upward trajectory, potentially reaching or exceeding $1 million by 2029. Average rent prices are also likely to increase, possibly surpassing $1,800 per month within the same timeframe, assuming current economic conditions and local market factors remain relatively stable.
In summary, zip code 90043 has demonstrated a clear trend towards increased homeownership and significantly rising average home prices over the past decade. While renter percentages have decreased, average rent prices have shown more moderate growth. The area's real estate market appears robust, with projections indicating continued appreciation in both home values and rental rates in the coming years.
