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Zip Code 90059: Home Values Triple Amid Modest Ownership Growth in Los Angeles Neighborhood
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 90059, located in Los Angeles, California, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual increase in homeownership rates, coupled with substantial growth in average home values and fluctuating average rent prices.
The homeownership rate in zip code 90059 has shown a steady upward trend, increasing from 41% in 2013 to 45% in 2022. This 4 percentage point increase coincides with a dramatic rise in average home prices. In 2013, the average home price was $183,398, which more than tripled to $563,472 by 2022. This represents a remarkable 207% increase in average home values over a nine-year period. The most significant year-over-year increase occurred between 2020 and 2021, when average home prices jumped from $443,312 to $510,525, a 15.2% increase in just one year.
Federal interest rates have played a crucial role in homeownership trends in zip code 90059. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the increase in homeownership, as they made mortgage financing more affordable. However, despite the sharp increase in interest rates to 1.68% in 2022, homeownership rates remained stable at 45%, suggesting other factors were also influencing homeownership decisions in this area.
The renter percentage in zip code 90059 has correspondingly decreased from 58% in 2013 to 55% in 2022. Despite this slight decrease in the proportion of renters, average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $1,121, which increased to $1,134 by 2022, representing a modest 1.2% increase over nine years. However, it's worth noting that average rent prices peaked at $1,320 in 2021 before decreasing in 2022. The population in this zip code has also fluctuated, peaking at 45,849 in 2017 and then decreasing to 40,121 by 2022, which may have influenced rental market dynamics.
In 2023, the average home price in zip code 90059 reached $572,251, a further 1.6% increase from 2022. This growth continued into 2024, with average home prices rising to $599,074, representing a 4.7% increase from 2023. Interestingly, these price increases occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This suggests that other factors, such as local market conditions or housing demand, may be outweighing the potential dampening effect of higher interest rates on home prices in this area.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 90059 will likely continue to rise over the next five years, albeit potentially at a more moderate pace. If the current trajectory holds, average home prices could potentially reach or exceed $700,000 by 2029. Average rent prices, which have shown more volatility, may continue to fluctuate but are likely to maintain an overall upward trend, potentially reaching around $1,300-$1,400 per month by 2029.
In summary, zip code 90059 has demonstrated a clear trend of increasing homeownership rates and rapidly appreciating average home values over the past decade. While average rent prices have shown more variability, they have also trended upward overall. The area's resilience in maintaining home price growth despite recent interest rate increases suggests a strong local housing market. These trends indicate that this Los Angeles neighborhood is experiencing significant changes in its housing landscape, with implications for both current and future residents.
