Loading Content...
Zip Code 90065: Rising Home Values and Stable Ownership in Los Angeles' Evolving Real Estate Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 90065, located in Los Angeles, California, has experienced significant fluctuations in its housing market over the past decade. This area, known for its diverse neighborhoods and proximity to downtown Los Angeles, has seen notable shifts in homeownership rates, average home prices, and average rent prices.
The homeownership rate in zip code 90065 has remained relatively stable, with slight fluctuations between 47% and 49% from 2013 to 2022. Meanwhile, average home prices have shown a dramatic upward trend. In 2010, the average home price was $399,583, which steadily increased to $1,112,004 by 2022, representing a remarkable 178% increase over 12 years. This substantial rise in average home prices, coupled with the relatively stable homeownership rate, suggests that while property values have appreciated significantly, it hasn't necessarily translated into a higher proportion of homeowners in the area.
Federal interest rates have played a role in shaping homeownership trends in zip code 90065. From 2010 to 2016, interest rates remained exceptionally low, hovering between 0.09% and 0.40%. During this period, the homeownership rate in the zip code remained relatively stable, fluctuating between 47% and 49%. As interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), there was a slight increase in homeownership, reaching 49% in 2018 and 2019. This suggests that despite rising interest rates, other factors may have influenced homeownership decisions in the area.
Renter percentages in zip code 90065 have mirrored homeownership rates, ranging from 51% to 53% between 2013 and 2022. Average rent prices have shown a steady increase over this period, rising from $1,322 in 2013 to $1,685 in 2022, a 27% increase. It's worth noting that the population in the zip code has fluctuated, peaking at 51,115 in 2017 and decreasing to 46,598 by 2022. Despite this population decrease, rent prices continued to rise, indicating strong rental demand in the area.
In 2023, the average home price in zip code 90065 slightly decreased to $1,096,391 from the previous year's $1,112,004. However, 2024 has seen a rebound, with average home prices rising to $1,123,540. This recent uptick occurs despite relatively high federal interest rates of 5.02% in 2023 and 5.33% in 2024, suggesting resilient demand for housing in this Los Angeles neighborhood.
Looking ahead, predictive models forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are expected to surpass $1.3 million by 2029, while average rent prices could reach around $2,000 per month. These projections are based on historical trends and assume relatively stable economic conditions.
In summary, zip code 90065 has demonstrated a robust housing market characterized by substantial appreciation in average home values and steady increases in average rent prices. Despite significant home price appreciation, homeownership rates have remained relatively stable, suggesting that rising property values have not dramatically altered the ownership-to-rental ratio in the area. The resilience of the housing market, even in the face of recent higher interest rates, indicates strong underlying demand for both owned and rented properties in this Los Angeles neighborhood.
