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West Torrance: Rising Home Values and Ownership Rates in a Resilient California Suburb
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
West Torrance, a neighborhood in Torrance, California, has experienced significant changes in homeownership and housing costs over the past decade. The area has seen a general trend of increasing homeownership rates, rising average home prices, and fluctuating average rent prices.
The homeownership rate in West Torrance increased steadily from 74% in 2013 to 78% in 2021. This upward trend coincided with substantial growth in average home prices during the same period. The average home price more than doubled from $674,096 in 2013 to $1,315,134 in 2022. The most dramatic rise occurred between 2020 and 2022, with average home prices increasing by 30.5% in just two years, from $1,007,877 to $1,315,134.
Federal interest rates have influenced homeownership trends in West Torrance. The period of historically low interest rates from 2013 to 2021, ranging from 0.08% to 0.40%, likely contributed to increased homeownership rates by making mortgages more affordable. However, the sharp rise in interest rates to 1.68% in 2022 coincided with a slight dip in homeownership from 78% to 76%, suggesting that higher borrowing costs may have deterred some potential buyers.
The renter population in West Torrance decreased from 26% in 2013 to 22% in 2021, before rising slightly to 24% in 2022. Average rent prices have shown volatility, increasing from $1,789 in 2013 to a peak of $2,335 in 2018, before declining to $2,078 in 2022. This fluctuation in rent prices does not show a clear correlation with the decreasing renter population, suggesting other factors such as housing supply and local economic conditions may be influencing rental markets.
Recent data shows that average home prices in West Torrance reached $1,298,638 in 2023 and further increased to $1,353,755 in 2024, representing a 4.2% year-over-year increase. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis. These higher interest rates may impact future homeownership trends and affordability in the neighborhood.
Predictive models forecast that average home prices in West Torrance will continue their upward trajectory, potentially reaching around $1,600,000 by 2029, assuming relatively stable economic conditions. Average rent prices are expected to follow a more moderate growth pattern, potentially reaching approximately $2,300 per month by 2029, reflecting the balance between housing demand and affordability in the rental market.
In summary, West Torrance has experienced a significant increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the renter population. The neighborhood has shown resilience in its housing market, with property values continuing to rise despite recent increases in interest rates. The interplay between federal interest rates, homeownership rates, and housing costs will likely continue to shape the real estate landscape of West Torrance in the coming years, potentially affecting affordability and demographic composition of the neighborhood.
