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Zip Code 90241: Steady Homeownership Amidst Rising Home Values in Downey, California
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 90241, located in Downey, California, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a general trend of increasing property values and a slight shift towards renting in recent years.
The homeownership rate in zip code 90241 has remained relatively stable, with some fluctuations between 2013 and 2022. In 2013, the homeownership rate was 42%, and it reached its peak at 44% in 2014 and 2015. However, by 2022, it settled at 43%. During this same period, average home prices in the area saw a substantial increase. In 2013, the average home price was $405,685, and by 2022, it had more than doubled to $838,898. This significant rise in home prices, despite the relatively stable homeownership rate, suggests that while property values have increased, it hasn't necessarily led to a higher percentage of homeowners in the area.
The relationship between federal interest rates and homeownership rates in zip code 90241 shows some correlation. For instance, in 2013, when interest rates were at 0.11%, the homeownership rate was 42%. As interest rates remained low, hovering around 0.1% to 0.4% between 2014 and 2016, the homeownership rate increased slightly to 44%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate showed a slight decline, settling at 43% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter percentage in zip code 90241 has shown a slight upward trend over the years. In 2013, 56% of the population were renters, and this percentage increased to 57% by 2022. Concurrently, average rent prices have also seen a steady increase. In 2013, the average rent was $1,415, and it rose to $1,623 by 2022, representing a 14.7% increase over nine years. This trend suggests that despite rising rent prices, more residents are opting to rent rather than buy homes in the area. The population in the zip code has also grown from 42,899 in 2013 to 43,685 in 2022, which may have contributed to the increased demand for rental properties.
Looking at the most recent data, the average home price in zip code 90241 for 2023 was $847,944, showing a slight increase from 2022. In 2024, the average home price further rose to $898,587, indicating a continuing upward trend in property values. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying decisions in the near future.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in zip code 90241 will continue to rise, potentially reaching around $1,100,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,900 per month within the same timeframe. These projections are based on the consistent upward trends observed in both home prices and rent over the past decade.
In summary, zip code 90241 has experienced significant growth in property values and rent prices from 2013 to 2024. While homeownership rates have remained relatively stable, there has been a slight shift towards renting. The area has seen substantial increases in average home prices, nearly doubling over a decade, and rent prices have also steadily climbed. The relationship between federal interest rates and homeownership rates suggests that future changes in interest rates may continue to influence the housing market in this zip code.
