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Westmont: Rising Home Values and Declining Ownership in a Compact California Community
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
Westmont, located in California, is a densely populated urban area with a rich demographic landscape. As of 2022, the city had a population of 35,345 packed into just 1.85 square miles, resulting in a high population density of 19,135 people per square mile. This compact community has experienced significant shifts in homeownership rates and housing costs over the past decade.
The trend of homeownership in Westmont has shown a steady decline from 2013 to 2022. In 2013, 32% of residents owned their homes, but by 2022, this figure had dropped to 28%. This decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $230,493, and it rose dramatically to $650,918 by 2022, representing a 182% increase over nine years. This inverse relationship between homeownership rates and home prices suggests that rising property values may have priced many residents out of the housing market.
Federal interest rates have played a crucial role in shaping homeownership trends in Westmont. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates remained relatively stable, hovering around 30-32%. However, as interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply, falling to 28% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership declined, the percentage of renters in Westmont increased from 68% in 2013 to 72% in 2022. This shift towards renting was accompanied by a rise in average rent prices. In 2013, the average rent was $1,176, and it increased to $1,268 by 2022, a 7.8% rise over nine years. The growth in the renter population, from 21,401 in 2013 to 25,448 in 2022, likely contributed to the upward pressure on rent prices, albeit at a more moderate pace compared to home prices.
In 2023 and 2024, the housing market in Westmont continued to evolve. The average home price in 2023 was $656,865, showing a slight increase from 2022. In 2024, the average home price further rose to $684,724. Notably, federal interest rates climbed significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may pose challenges for potential homebuyers in the coming years.
Looking ahead, based on the trends observed, we can project that average home prices in Westmont may continue to rise over the next five years, potentially reaching around $750,000 by 2029. However, the rate of increase might slow down due to the higher interest rates. Average rent prices are also expected to climb, possibly reaching approximately $1,400 by 2029, assuming a similar growth rate to recent years.
In summary, Westmont has experienced a significant shift from homeownership to renting over the past decade, driven by rapidly increasing home prices and fluctuating interest rates. The inverse relationship between homeownership rates and home prices, coupled with the impact of federal interest rates, has reshaped the housing landscape in this densely populated California community. As the city moves forward, the balance between homeowners and renters will likely continue to evolve in response to these economic factors.
