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Zip Code 90047: Rising Home Values and Shifting Ownership Patterns in Los Angeles
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 90047, located in Los Angeles, California, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a general trend of increasing average home prices and fluctuating rental rates, while maintaining a relatively stable balance between owner-occupied and renter-occupied housing units.
The homeownership rate in zip code 90047 has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the ownership rate was 54%, and it peaked at 56% in 2019 before settling at 52% in 2022. Despite these minor fluctuations, average home prices have shown a consistent upward trend. In 2013, the average home price was $248,813, and it rose dramatically to $689,727 by 2022, representing a 177% increase over nine years.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of stable homeownership rates around 54-55%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased slightly to 56%, possibly due to buyers anticipating further rate increases. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not significantly impact homeownership rates, which remained at 54%.
Renter percentages have shown an inverse relationship to ownership rates, naturally fluctuating between 44% and 48% from 2013 to 2022. Average rent prices have generally increased over this period, albeit with some fluctuations. In 2013, the average rent was $1,348, which decreased to $1,251 in 2016 before rising again to $1,466 in 2021. Interestingly, despite the increasing population from 49,915 in 2013 to 54,953 in 2022, rent prices have not shown a consistent upward trend, suggesting other factors influencing the rental market.
Looking at the most recent data, the average home price in zip code 90047 slightly decreased from $689,727 in 2022 to $684,676 in 2023, marking a marginal 0.7% decline. However, in 2024, the average home price rebounded to $710,509, representing a 3.8% increase from 2023. Notably, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and property values.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 90047 will continue to rise, albeit at a more moderate pace than seen in the past decade. Projections suggest that by 2029, average home prices could reach approximately $850,000 to $900,000, assuming economic conditions remain relatively stable. Rent prices are expected to follow a similar upward trajectory, potentially reaching an average of $1,600 to $1,700 per month by 2029.
In conclusion, zip code 90047 has demonstrated remarkable resilience in its housing market. Despite significant increases in average home prices, homeownership rates have remained relatively stable. The area has seen a consistent upward trend in property values, with only minor fluctuations in rental rates. The recent rise in interest rates may pose challenges to homeownership in the near future, but the strong appreciation in home values suggests continued demand in this Los Angeles neighborhood. As the population continues to grow and housing remains in high demand, both average home prices and rent prices are projected to increase over the next five years, albeit at a more moderate pace than in previous years.
