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Zip Code 90262: Lynwood's Soaring Home Values and Shifting Ownership Trends
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 90262, located in Lynwood, California, has experienced significant demographic and real estate shifts over the past decade. This urban area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 90262 has shown a notable increase in recent years, rising from 43% in 2017 to 50% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2017, the average home price was $381,526, which steadily climbed to $619,220 by 2022, representing a remarkable 62.3% increase over five years. This positive correlation between homeownership rates and average home prices suggests that despite rising costs, more residents in the area were able to transition into homeownership.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates coincided with the initial decline and subsequent rise in homeownership rates in zip code 90262. The low-interest environment likely made mortgages more accessible, contributing to the increase in homeownership from 47% in 2019 to 50% in 2022, despite rising home prices.
Renter percentages in zip code 90262 have shown an inverse relationship to homeownership rates, decreasing from 57% in 2017 to 50% in 2022. Interestingly, average rent prices have continued to rise during this period, increasing from $1,277 in 2017 to $1,296 in 2022, a 1.5% increase. This modest rise in rent prices, compared to the substantial increase in home prices, may have contributed to the shift towards homeownership. The population in the zip code decreased from 69,703 in 2017 to 64,222 in 2022, which could have affected the rental market dynamics.
Looking at the most recent data, the average home price in zip code 90262 reached $632,409 in 2023 and further increased to $663,291 in 2024, representing a 4.9% year-over-year growth. This continued appreciation in home values occurs against a backdrop of higher interest rates, with federal interest rates rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 90262 will continue to appreciate, potentially reaching around $800,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices are also expected to increase, potentially reaching approximately $1,500 per month by 2029, assuming a continuation of the gradual upward trend seen in recent years.
In summary, zip code 90262 has experienced a significant shift towards homeownership, with rates increasing from 43% to 50% between 2017 and 2022, despite rapidly rising home prices. The area has seen substantial appreciation in average home values, with prices more than doubling from $293,829 in 2014 to $663,291 in 2024. While rent prices have also increased, the rise has been more modest. The interplay between federal interest rates, home prices, and rental markets has shaped these trends, with recent increases in interest rates potentially influencing future market dynamics.
