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Zip Code 90023: Rising Home Values and Shifting Ownership in Los Angeles' Urban Landscape
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 90023, located in Los Angeles, California, is a densely populated urban area with a rich cultural history. This neighborhood has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. The area has predominantly been renter-occupied, with a gradual increase in homeownership rates until recent years.
The homeownership rate in zip code 90023 showed a slight upward trend from 2013 to 2017, rising from 26% to 29%. However, this trend reversed in subsequent years, settling at 26% by 2022. Concurrently, average home prices in the area have seen a substantial increase. In 2013, the average home price was $217,421, which more than doubled to $494,761 by 2020, and further increased to $612,105 in 2022. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for many residents.
Federal interest rates have played a role in shaping homeownership trends in zip code 90023. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which coincided with the increase in homeownership rates from 26% to 28%. As interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, the homeownership rate stabilized and then slightly declined. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The renter population in zip code 90023 has remained the majority, with the percentage of renters fluctuating between 71% and 74% from 2013 to 2022. Average rent prices have shown a steady upward trend during this period. In 2013, the average rent was $960, which increased to $1,171 by 2020, and further rose to $1,376 in 2022. This represents a 43.3% increase in average rent over nine years. The consistent rise in rent prices, coupled with a growing population (from 46,192 in 2013 to 47,146 in 2020), indicates a strong demand for rental properties in the area.
In 2023 and 2024, the average home prices in zip code 90023 continued to rise, reaching $619,349 in 2023 and $642,036 in 2024. This represents a 1.2% increase from 2022 to 2023 and a further 3.7% increase from 2023 to 2024. Notably, federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in zip code 90023 will continue to rise over the next five years, albeit at a more moderate pace. We can expect average home prices to potentially reach around $700,000 by 2029. Similarly, average rent prices are likely to maintain their upward trajectory, potentially surpassing $1,600 per month within the same timeframe.
In summary, zip code 90023 has experienced significant growth in both average home prices and average rent prices over the past decade. While homeownership rates initially increased, they have since stabilized at a lower level, possibly due to rising property values and interest rates. The area remains predominantly renter-occupied, with rent prices steadily climbing. These trends reflect the dynamic nature of the Los Angeles real estate market and the ongoing challenges of housing affordability in urban areas.
