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Zip Code 90249: Average Home Values and Ownership Trends in Gardena, 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 90249, located in Gardena, California, has experienced notable fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. This area, spanning 2.96 square miles, has seen significant changes in its real estate landscape, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 90249 has shown some variability from 2013 to 2022. In 2013, the ownership rate stood at 59%, reaching a peak of 63% in 2015 before settling at 61% in 2022. During this period, average home prices in the area have shown a consistent upward trend. In 2013, the average home price was $337,175, which more than doubled to $789,753 by 2022. This represents a substantial increase of 134% over nine years, indicating a robust appreciation in property values.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. From 2013 to 2016, as interest rates remained low (ranging from 0.11% to 0.40%), homeownership rates increased from 59% to 62%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates declined slightly to 58% by 2019. Interestingly, despite very low interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates only marginally increased to 59% in 2020 and 58% in 2021, suggesting that other factors were also influencing homeownership decisions in this area.
Renter percentages in zip code 90249 have shown a slight overall increase from 39% in 2013 to 42% in 2021, before decreasing to 39% in 2022. Average rent prices have generally trended upward during this period. In 2013, the average rent was $1,308, which increased to $1,626 by 2021, representing a 24% increase. However, there was a notable decrease to $1,481 in 2022. This trend in rent prices, coupled with the fluctuating renter percentages, suggests a dynamic rental market responding to various economic factors and possibly changes in housing supply and demand.
Moving to the most recent data, in 2023, the average home price in zip code 90249 slightly decreased to $787,562 from the 2022 peak. However, in 2024, prices have rebounded to $820,498, indicating continued strength in the housing market. This occurs against a backdrop of rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 90249 may continue to appreciate, albeit at a more moderate pace due to higher interest rates. A conservative estimate might see average home prices reaching around $900,000 to $950,000 by 2029. Average rent prices could also continue their upward trajectory, potentially reaching $1,800 to $2,000 per month by 2029, assuming consistent economic growth and demand for rental properties in the area.
In summary, zip code 90249 has demonstrated strong growth in property values over the past decade, with some fluctuations in homeownership and rental rates. The area has shown resilience in its housing market, with recent data indicating continued appreciation despite rising interest rates. These trends suggest a dynamic and evolving real estate landscape in this part of Gardena, California, with potential for further growth in both home values and rental prices in the coming years.
