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South Pasadena: Rising Home Values Amidst Stable Ownership in a Historic Los Angeles County City
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
South Pasadena, located in California, is a charming suburban city known for its tree-lined streets and historic architecture. With a population of 26,583 in 2022, this small city has experienced notable shifts in its housing market over the past decade. The homeownership rate has remained relatively stable, hovering around 47-48% in recent years, while average home prices and average rent have shown significant increases.
The relationship between homeownership rates and average home prices in South Pasadena presents an interesting dynamic. In 2013, when the homeownership rate was 47%, the average home price was $809,568. As average home prices rose steadily, reaching $1,670,505 in 2022, the homeownership rate remained relatively stable at 47%. This suggests that despite the substantial increase in home values, long-term residents have managed to maintain ownership, while new buyers may face greater challenges entering the market.
Federal interest rates have played a role in homeownership trends in South Pasadena. When interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate increased slightly from 47% to 48%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, the city's high average home prices may have limited the impact of low interest rates on overall homeownership rates.
Renter percentages and average rent prices in South Pasadena have shown a correlation over the years. In 2013, when 53% of residents were renters, the average rent was $1,449. As the renter percentage increased to 57% in 2014 and 2015, average rent also rose to $1,538 by 2015. In recent years, the renter percentage has stabilized around 52-53%, while average rent continued to climb, reaching $1,793 in 2022. This trend suggests that despite the high cost of renting, a significant portion of the population remains in the rental market, possibly due to the even higher costs associated with homeownership in the area.
Looking at the most recent data, the average home price in South Pasadena for 2023 was $1,635,033, showing a slight decrease from 2022. However, in 2024, the average home price has rebounded to $1,765,707, indicating a continuing upward trend in property values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and could potentially influence future homeownership rates in the city.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in South Pasadena will continue to rise, potentially reaching or exceeding $2 million by 2029. Average rent prices are also expected to increase, possibly surpassing $2,200 per month within the same timeframe. These projections are based on the consistent upward trends observed in both metrics over the past decade.
In summary, South Pasadena's housing market is characterized by high and rising property values, with average home prices more than doubling from 2013 to 2024. Despite these increases, homeownership rates have remained relatively stable, suggesting a resilient long-term owner population. The rental market has also seen significant price increases, with average rents rising by over 23% from 2013 to 2022. As the city moves forward, the interplay between rising property values, increasing interest rates, and the balance between owners and renters will continue to shape South Pasadena's housing landscape.
