Rental trends in zip code 90606 have shown a gradual increase in both percentage and prices. The percentage of renters increased slightly from 30% in 2013 to 33% in 2016, before settling back to 30% in 2022. Average rent prices have risen steadily, from $1,472 in 2013 to $1,696 in 2022, an increase of 15.2% over nine years. This trend aligns with the area's population changes, which saw a slight decrease from 33,117 in 2013 to 32,546 in 2022, potentially impacting rental demand.

Looking at more recent data, the average home price in zip code 90606 continued to rise in 2023, reaching $714,349, a 1% increase from 2022. In 2024, the average home price further increased to $746,712, representing a 4.5% rise from 2023. Notably, federal interest rates have also seen significant increases, rising to 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade.

Applying predictive models to forecast 5-year trends, we anticipate continued growth in both average home prices and rent prices in zip code 90606. Based on historical data and current market conditions, average home prices could potentially reach around $900,000 by 2029, assuming a moderate annual growth rate of 3-4%. Average rent prices might increase to approximately $1,900-$2,000 per month in the same timeframe, factoring in a similar growth trajectory.

In summary, zip code 90606 has demonstrated resilience in homeownership rates despite significant increases in property values and fluctuating interest rates. The area has seen substantial appreciation in home values, more than doubling over a decade, while rental prices have shown steady but more modest growth. The recent surge in interest rates, coupled with continued home price appreciation, suggests a potentially challenging environment for new homebuyers in the coming years, which could impact the long-standing homeownership rates in this zip code.