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Zip Code 90602: Rising Home Values and Steady Ownership in Whittier's Resilient Housing Market
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 90602, located in Whittier, California, has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership, average home prices, and average rent prices, providing insights into the evolving real estate landscape of this suburban community.
The homeownership rate in zip code 90602 has shown a gradual increase from 35% in 2013 to 39% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $390,288, which steadily climbed to $807,091 by 2022, representing a remarkable 106.8% increase over nine years. This parallel growth suggests that despite rising home values, more residents in the area have been able to transition into homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 90602. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the initial increase in homeownership from 35% to 38%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate stabilized around 38-39%. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) may have supported the maintenance of homeownership levels despite rapidly increasing home prices.
Renter percentages in zip code 90602 have correspondingly decreased from 65% in 2013 to 61% in 2022. During this period, average rent prices have shown a consistent upward trend. In 2013, the average rent was $1,261, which increased to $1,505 by 2022, a 19.3% rise. This increase in rent prices, while significant, was not as dramatic as the surge in home prices. The population in the zip code has remained relatively stable, fluctuating between 22,918 and 24,356 residents over the years, suggesting that changes in renter percentages are more likely due to shifts in housing preferences or economic factors rather than significant population changes.
The most recent data for 2023 and 2024 shows a slight moderation in the housing market. The average home price in 2023 was $803,688, a minor decrease from 2022, but it rebounded to $837,830 in 2024. This represents a 4.2% increase from 2023 to 2024. Notably, interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 90602 may continue to rise over the next five years, albeit at a more moderate pace. Based on historical trends, we can expect average home prices to potentially reach around $950,000 to $1 million by 2029. Average rent prices are also projected to increase, potentially reaching $1,700 to $1,800 per month in the same timeframe.
In summary, zip code 90602 has experienced a significant increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the percentage of renters. The area has shown resilience in maintaining homeownership levels despite substantial price increases. The recent rise in interest rates and the slight cooling of home prices in 2023 suggest a potential shift in market dynamics. As we move forward, the interplay between interest rates, home prices, and rent costs will continue to shape the housing landscape in this Whittier neighborhood.
