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Rising Home Values and Shifting Ownership in Zip Code 90280: South Gate's Evolving Housing Market
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 90280, located in South Gate, California, has experienced significant shifts in homeownership rates and housing prices over the past decade. This urban area, spanning 7.65 square miles, has seen a gradual transition from a predominantly owner-occupied community to one with a higher proportion of renters, alongside substantial increases in both average home values and average rent prices.
The homeownership rate in zip code 90280 has shown a notable decline from 2013 to 2022. In 2013, 47% of housing units were owner-occupied, but by 2018, this figure had dropped to 42%. However, there was a slight recovery to 45% by 2022. This trend correlates inversely with the average home prices, which saw a dramatic increase during the same period. In 2013, the average home price was $270,418, and it rose steadily to reach $628,894 by 2022, marking a 132.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code aligns with well-established trends. As interest rates remained historically low from 2013 to 2021 (ranging from 0.08% to 2.16%), one might expect increased homeownership. However, the rapid rise in home prices likely outpaced the benefits of low interest rates, contributing to the overall decline in homeownership rates during this period.
Conversely, the percentage of renter-occupied housing units increased from 53% in 2013 to a peak of 58% in 2018, before slightly decreasing to 55% in 2022. This trend coincided with a steady rise in average rent prices. The average rent increased from $1,132 in 2013 to $1,270 in 2022, representing a 12.2% increase. It's worth noting that despite the population decline from 96,533 in 2013 to 94,081 in 2022, rent prices continued to climb, suggesting strong demand for rental properties in the area.
As of 2024, the average home price in zip code 90280 has reached $674,234, showing a continued upward trajectory from the 2023 average of $642,651. This represents a 4.9% increase in just one year. Concurrently, the federal interest rate has risen to 5.33% in 2024, up from 5.02% in 2023, potentially impacting homebuying affordability and demand.
Looking ahead, predictive models suggest that both average home prices and rent prices in zip code 90280 are likely to continue their upward trend over the next five years. Based on historical data and current market conditions, average home prices could potentially reach or exceed $800,000 by 2029. Average rent prices may also see a steady increase, potentially surpassing $1,500 per month within the same timeframe.
In summary, zip code 90280 has undergone significant changes in its housing landscape. The area has experienced a shift towards more renter-occupied units, coupled with substantial increases in both average home values and rent prices. Despite recent slight recoveries in homeownership rates, the overall trend suggests a continuing challenge for potential homebuyers due to rising prices and interest rates. The rental market remains strong, with consistent demand driving up average rents. As the community continues to evolve, these housing trends will likely play a crucial role in shaping the demographic and economic characteristics of the area in the coming years.
