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Rising Home Values and Ownership Rates in Los Angeles Zip Code 90062: A Decade of Urban Housing Dynamics
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 90062, located in Los Angeles, California, has experienced significant changes in its housing market over the past decade. This area has seen a gradual shift in homeownership rates, coupled with substantial increases in both average home prices and average rent prices.
The ownership percentage in zip code 90062 has shown a notable upward trend, increasing from 41% in 2013 to 46% in 2022. This rise in homeownership coincided with a remarkable surge in average home prices. In 2013, the average home price was $241,278, which more than tripled to $740,850 by 2022. This represents a staggering 207% increase over nine years. The most significant year-over-year increase occurred between 2017 and 2018, when average home prices jumped from $403,458 to $495,276, a 22.8% rise in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 90062. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.40%), homeownership rates remained relatively stable around 39-41%. However, as interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, homeownership rates paradoxically increased to 43%. This trend continued, with homeownership reaching 48% in 2020 despite fluctuating interest rates, suggesting that other factors such as local economic conditions and housing policies may have had a stronger influence on homeownership in this area.
Renter percentages in zip code 90062 have generally decreased as homeownership rates increased. The renter-occupied percentage dropped from 59% in 2013 to 54% in 2022. During this period, average rent prices experienced moderate fluctuations. In 2013, the average rent was $1,317, which decreased slightly to $1,277 by 2022, a 3% decrease over nine years. Interestingly, the population of the zip code increased from 30,905 in 2013 to 33,579 in 2022, suggesting that the housing supply may have kept pace with population growth, helping to maintain relatively stable rent prices.
In 2023, the average home price in zip code 90062 decreased slightly to $726,724, a 1.9% drop from 2022. This minor correction coincided with a significant increase in federal interest rates to 5.02%. Moving into 2024, the average home price has rebounded slightly to $733,301, while interest rates have further increased to 5.33%. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 90062 may continue to rise moderately over the next five years, potentially reaching around $800,000 by 2029. This projection is based on the historical growth rate and current market conditions. Average rent prices are expected to remain relatively stable with potential for slight increases, possibly reaching $1,400 by 2029, assuming continued population growth and demand for rental properties in the area.
In summary, zip code 90062 has experienced a significant increase in homeownership rates and average home prices over the past decade, despite fluctuations in federal interest rates. The area has shown resilience in its housing market, with a growing population and relatively stable rent prices. The recent slight decrease in home prices, coupled with rising interest rates, may indicate a period of market adjustment. However, the long-term trend suggests continued growth in both homeownership and property values in this Los Angeles neighborhood.
