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Zip Code 90094: Rising Home Values and Declining Ownership 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 90094, a small urban district in Los Angeles, California, spanning just 0.55 square miles, has undergone significant changes in its housing market over the past decade. This densely populated area has experienced notable shifts in homeownership rates, average home prices, and average rent prices from 2013 to 2022. The overall trend indicates a decrease in homeownership, accompanied by substantial increases in both home values and rental costs.
The homeownership rate in zip code 90094 has shown a declining trend from 2013 to 2022. In 2013, 43% of residents owned their homes, but by 2022, this figure had dropped to 32%. This decrease in homeownership coincided with a substantial increase in average home prices. The average home price rose from $677,950 in 2013 to $1,324,599 in 2022, representing a 95% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents in the area.
Federal interest rates have played a role in homeownership trends in zip code 90094. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.40%, which corresponded with relatively stable homeownership rates between 38% and 43%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates declined from 39% to 34%. Despite a sharp drop in interest rates to 0.08% in 2021, homeownership only slightly increased to 38%, suggesting that other factors, such as high home prices, may have counteracted the potential positive effect of low interest rates on homeownership.
The percentage of renters in zip code 90094 has generally increased from 57% in 2013 to 68% in 2022. This trend coincides with a significant rise in average rent prices. In 2013, the average rent was $1,781, which increased to $3,244 by 2022, representing an 82% increase. The growing renter population, from 2,628 in 2013 to 6,161 in 2022, likely contributed to the upward pressure on rent prices due to increased demand for rental units.
In 2023 and 2024, the average home prices in zip code 90094 continued to rise, reaching $1,327,982 in 2023 and $1,380,029 in 2024. This represents a modest increase of 0.25% from 2022 to 2023, followed by a more substantial 3.92% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homeownership affordability in the area.
Based on historical trends and current market conditions, projections indicate continued growth in both average home prices and average rent prices for zip code 90094 over the next five years. Average home prices are expected to increase by approximately 3-5% annually, potentially reaching around $1,600,000 by 2029. Average rent prices are likely to follow a similar trajectory, with projected annual increases of 2-4%, potentially reaching $3,800-$4,000 per month by 2029.
In summary, zip code 90094 has experienced a significant shift towards a renter-majority population, driven by rapidly increasing average home prices and rising average rent costs. The inverse relationship between homeownership rates and average home prices, coupled with fluctuating interest rates, has shaped the housing market in this Los Angeles neighborhood. As the area continues to evolve, it is likely to see further increases in both home values and rental costs, potentially maintaining its trend towards a predominantly renter-occupied community.
