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San Pedro's Rising Home Values and Shifting Ownership Trends in a Historic Port Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
San Pedro, a Los Angeles neighborhood with a maritime heritage, has experienced notable changes in homeownership and housing prices over the past decade. From 2013 to 2022, the area maintained a relatively stable homeownership rate while witnessing substantial growth in average home prices. The homeownership rate showed minor fluctuations, increasing slightly from 47% in 2013 to 49% in 2022. During this same period, average home prices nearly doubled, rising from $423,765 in 2013 to $831,061 in 2022, representing a 96% increase over nine years.
Federal interest rates have significantly influenced homeownership trends in San Pedro. Between 2013 and 2016, when interest rates were exceptionally low (0.11% to 0.40%), the homeownership rate remained stable at 46-47%. As interest rates rose from 2017 to 2019 (1% to 2.16%), homeownership slightly increased to 47%. Interestingly, when rates dropped again in 2020 and 2021 (0.38% and 0.08% respectively), homeownership further increased to 49%, likely due to more affordable financing options.
The rental market in San Pedro has also seen changes, with the percentage of renters remaining relatively stable between 51% and 54% from 2013 to 2022. However, average rent prices steadily increased during this period, rising from $1,423 in 2013 to $1,702 in 2022, a 19.6% increase. The population growth from 89,756 in 2013 to 93,855 in 2022 may have contributed to the upward pressure on rent prices as housing demand increased in the area.
Recent years have shown continued fluctuations in San Pedro's housing market. In 2023, the average home price slightly decreased to $830,010, a marginal 0.13% drop from 2022. However, 2024 saw a rebound with average home prices reaching $853,987, a 2.89% increase from 2023. Federal interest rates rose significantly to 5.02% in 2023 and further to 5.33% in 2024, which could potentially impact future homeownership rates and home prices in the area.
Based on historical trends and current market conditions, projections suggest continued growth in both average home prices and rent prices in San Pedro over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $950,000 to $1 million by 2029. Average rent prices are anticipated to follow a similar pattern, potentially increasing to approximately $1,900 to $2,000 per month in the same timeframe.
In conclusion, San Pedro has demonstrated resilience in maintaining a stable homeownership rate despite significant increases in average home prices. The neighborhood has experienced consistent population growth, which has likely contributed to rising rent prices. The interplay between federal interest rates, homeownership rates, and housing prices indicates that San Pedro's real estate market is dynamic and responsive to broader economic factors. As the area continues to evolve, it is likely to remain an attractive location for both homeowners and renters, with potential for further growth in property values and rental rates.
