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Zip Code 90212: Beverly Hills' Luxury Real Estate Market Sees Shifting Trends in Home Values and Ownership
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
Beverly Hills zip code 90212 is a prestigious and affluent area known for its luxury real estate and high-profile residents. This analysis examines the trends in homeownership rates, average home prices, and average rent prices from 2010 to 2024, revealing significant shifts in the local real estate market. The homeownership rate in zip code 90212 has shown a declining trend over the past decade. In 2013, 30% of residents owned their homes, but by 2022, this figure had dropped to 24%. This 6 percentage point decrease indicates a significant shift towards renting in the area. Concurrently, average home prices have experienced substantial growth. In 2010, the average home price was $1,297,748, which increased dramatically to $2,904,452 by 2022, representing a 123.8% increase over 12 years.
The relationship between federal interest rates and homeownership rates in zip code 90212 appears to follow general economic principles. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 30%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 24%. This trend suggests that higher interest rates may have contributed to making homeownership less attainable in this already expensive market.
Renter percentages in zip code 90212 have increased from 70% in 2013 to 76% in 2022, inversely mirroring the decline in homeownership. Average rent prices have also shown a steady upward trend. In 2013, the average rent was $1,920, which increased to $2,215 by 2022, representing a 15.4% rise over nine years. The population in the zip code fluctuated during this period, peaking at 12,744 in 2019 before declining to 11,141 in 2022. Despite the population decrease, the continued rise in rent prices suggests strong demand for rental properties in this desirable area.
In 2023, the average home price in zip code 90212 decreased to $2,675,133, a 7.9% drop from the previous year. This decline continued into 2024, with prices further reducing to $2,550,775. Interestingly, this downward trend in home prices 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 likely contributed to cooling the housing market in this area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 90212 may experience a period of stabilization or modest growth, influenced by the current high interest rates and economic conditions. Average rent prices are expected to continue their upward trajectory, albeit at a potentially slower pace, driven by the area's desirability and the increasing preference for renting among residents.
In summary, zip code 90212 in Beverly Hills has experienced a significant shift towards renting, with homeownership rates declining and renter percentages increasing over the past decade. Average home prices saw substantial growth until 2022, followed by a notable decline in 2023 and 2024. Average rent prices have consistently increased, reflecting the strong demand for rental properties in this exclusive area. The interplay between federal interest rates, home prices, and homeownership rates underscores the complex dynamics shaping the real estate market in this prestigious zip code.
