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Zip Code 90274: Stable Homeownership and Rising Home Values in Palos Verdes Estates
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 90274, located in Palos Verdes Estates, California, is a prestigious area known for its luxurious homes and scenic coastal views. This affluent community has maintained a consistently high rate of homeownership, with average home prices showing a significant upward trend over the years. The rental market, though smaller, has also experienced notable changes in average rent prices.
The homeownership rate in zip code 90274 has remained remarkably stable, hovering around 87-88% throughout the observed period. This high rate of ownership coincides with a substantial increase in average home prices. In 2010, the average home price was $1,263,248, and it steadily climbed to reach $2,542,366 by 2022, representing a 101% increase over 12 years. This trend suggests a strong correlation between the area's desirability and its property values, with homeowners benefiting from significant appreciation in their investments.
The relationship between federal interest rates and homeownership rates in this zip code appears to be less pronounced than in many other areas. Despite fluctuations in interest rates, the homeownership rate remained relatively constant. For instance, when interest rates dropped from 0.18% in 2010 to 0.08% in 2021, the homeownership rate only increased marginally from 87% to 88%. This stability might be attributed to the area's affluence, where buyers are less sensitive to interest rate changes.
The rental market in zip code 90274, while smaller, has shown interesting trends. The percentage of renters has consistently been around 12-13% of the population. Average rent prices have seen significant increases, rising from $2,143 in 2013 to $3,095 in 2022, a 44.4% increase over nine years. This rise in rent prices outpaced the growth in the renter population, suggesting a high demand for rental properties in this desirable area.
In 2023 and 2024, the average home prices in zip code 90274 continued their upward trajectory. The average home price in 2023 was $2,541,424, showing a slight decrease from 2022, but it rebounded to $2,631,993 in 2024. This represents a 3.6% increase from 2023 to 2024. Interestingly, this price growth occurred despite rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, indicating the strong demand for properties in this zip code.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue in zip code 90274 over the next five years. Based on historical data and current market conditions, average home prices could potentially reach or exceed $3 million by 2029. Similarly, average rent prices may surpass $3,500 per month within the same timeframe, assuming the current growth rate persists.
In summary, zip code 90274 in Palos Verdes Estates demonstrates a robust and stable housing market characterized by high homeownership rates and steadily increasing property values. The area's desirability, as reflected in its consistently high home prices and rising rents, seems to override typical market pressures such as interest rate fluctuations. As we move forward, this zip code is poised to maintain its status as a premium residential area with continued growth in both the ownership and rental sectors.
