Loading Content...
Rising Home Values and Shifting Ownership in La Verne's Foothill Boulevard Corridor
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Foothill Boulevard Corridor in La Verne, California, has experienced significant changes in homeownership and housing costs over the past decade. This neighborhood, known for its mix of residential and commercial properties, reflects broader economic trends and local market dynamics. From 2013 to 2022, the area witnessed a decline in homeownership rates from 66% to 60%, while average home prices saw a substantial increase of 109%, rising from $392,845 to $821,075.
Federal interest rates have played a crucial role in shaping these homeownership trends. In 2013, when interest rates were at a low 0.11%, homeownership in the neighborhood stood at 66%. As interest rates gradually increased to 1.68% by 2022, homeownership decreased to 60%. This trend aligns with the general economic principle that lower interest rates tend to encourage homeownership by making mortgages more affordable, while higher rates can deter potential buyers.
The renter population in the Foothill Boulevard Corridor has shown a corresponding increase as homeownership rates declined. The percentage of renters rose from 34% in 2013 to 40% in 2022. Average rent prices also increased during this period, rising from $1,744 in 2013 to $1,840 in 2022, a 5.5% increase. This modest rise in rent prices, compared to the substantial growth in home prices, may have made renting a more attractive option for some residents, contributing to the shift in housing tenure.
Recent data shows that average home prices in the neighborhood continued to rise, reaching $823,445 in 2023 and $864,820 in 2024. This represents a 5% increase from 2023 to 2024, indicating a continued strong housing market in the area. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the neighborhood.
Predictive models forecast continued growth in both average home prices and rent prices over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could potentially reach the $950,000 to $1 million range by 2029, while average rent prices may increase to around $2,000 to $2,200 per month.
In conclusion, the Foothill Boulevard Corridor has experienced a gradual shift towards a higher proportion of renters, driven by substantial increases in home prices and fluctuating interest rates. Despite this trend, both the ownership and rental markets have shown resilience and growth. The neighborhood's ability to maintain relatively stable occupancy rates while accommodating rising housing costs suggests a strong local economy and continued desirability of the area.
