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Zip Code 90024: UCLA Neighborhood Sees Rising Home Values and Shifting Ownership Trends
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 90024, located in Los Angeles, California, is a dynamic urban area known for its proximity to the University of California, Los Angeles (UCLA). This neighborhood has experienced significant fluctuations in homeownership rates and property values over the past decade, with a general trend towards increasing average home prices and average rent costs.
The homeownership rate in zip code 90024 has shown a slight increase over recent years, rising from 29% in 2016 to 34% in 2022. This upward trend in homeownership coincides with a substantial increase in average home prices. In 2016, the average home price was $933,961, which rose dramatically to $1,447,057 by 2022, representing a 55% increase over six years. This correlation suggests that despite rising home values, more residents have been able to enter the housing market.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were consistently low (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable around 30%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership to 31% in 2018. Interestingly, the most notable increase in homeownership occurred between 2020 and 2022, rising from 33% to 34%, despite fluctuating interest rates during this period.
The rental market in zip code 90024 has also experienced significant changes. The percentage of renters decreased slightly from 71% in 2016 to 66% in 2022. However, this decrease in the renter population has not led to a reduction in average rent prices. In fact, average rent prices have steadily increased from $2,109 in 2016 to $2,438 in 2022, a 15.6% increase. This trend suggests a competitive rental market, possibly driven by the area's desirability and proximity to UCLA.
Looking at the most recent data, the average home price in 2023 was $1,404,069, showing a slight decrease from 2022. In 2024, the average home price further decreased to $1,396,512. This recent downward trend coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices in the area.
Applying predictive models to forecast 5-year trends, we can anticipate continued fluctuations in the housing market. Average home prices are likely to stabilize or potentially decrease slightly in the short term due to high interest rates. However, given the desirable location and historical trends, a gradual increase in home values can be expected over the longer term. Average rent prices are projected to continue their upward trajectory, albeit at a potentially slower rate, reflecting the area's persistent demand for rental properties.
In summary, zip code 90024 has demonstrated resilience in its housing market, with increasing homeownership rates despite rising property values. The rental market remains strong, with steadily increasing average rents. Recent data shows a slight cooling in home prices, likely influenced by rising interest rates. Moving forward, this area is expected to maintain its appeal, with potential for continued growth in both the homeownership and rental sectors, subject to broader economic factors and local market conditions.
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