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Zip Code 90621: Buena Park's Shifting Home Values and Ownership Near Knott's Berry Farm
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 90621, located in Buena Park, California, offers a dynamic real estate landscape with notable shifts in homeownership rates and property values over the past decade. This area has experienced significant changes in average home prices and average rent costs, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 90621 has shown a slight decline over recent years. In 2013, the percentage of owner-occupied homes stood at 38%, gradually increasing to 42% by 2019. However, this trend reversed, with ownership rates dropping back to 38% by 2022. This fluctuation coincides with substantial changes in average home prices. The average home price in 2013 was $404,413, which steadily increased to $591,724 by 2019, representing a 46% increase over six years. Despite the slight dip in homeownership rates, average home prices continued to rise, reaching $800,358 in 2022, a 98% increase from 2013.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 90621. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the initial increase in homeownership rates. As interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, we observe a stabilization in homeownership rates around 41-42%. The subsequent drop in homeownership to 38% by 2022 coincides with a sharp increase in average home prices, potentially making homeownership less attainable despite relatively low interest rates of 1.68% in that year.
The rental market in zip code 90621 has shown a complementary trend to homeownership. The percentage of renter-occupied units increased from 61% in 2013 to 62% in 2022. This shift corresponds with a steady rise in average rent prices. In 2013, the average rent was $1,391, which increased to $1,831 by 2019, a 32% rise. By 2022, average rent reached $1,884, representing a 35% increase from 2013. The population in the zip code has remained relatively stable, fluctuating between 33,000 and 35,000 residents, suggesting that the increase in rental rates is more likely due to market demand and property value appreciation rather than significant population changes.
Looking at the most recent data, the average home price in zip code 90621 reached $808,963 in 2023 and further increased to $859,407 in 2024. This represents a 7.3% year-over-year increase from 2022 to 2023 and a 6.2% increase from 2023 to 2024. Notably, these price increases occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has maintained growth even in the face of less favorable financing conditions.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in both average home prices and average rent in zip code 90621. Based on historical data and current market conditions, average home prices could potentially reach the $950,000 to $1,000,000 range by 2029. Average rent prices are projected to increase at a more moderate pace, potentially reaching $2,200 to $2,400 per month in the same timeframe.
In summary, zip code 90621 has demonstrated a robust real estate market with significant appreciation in both home values and rental rates over the past decade. Despite fluctuations in homeownership rates, property values have shown consistent growth, even in the face of rising interest rates. The area's stable population and increasing property values suggest a continued demand for housing in this Buena Park neighborhood, with both the rental and ownership markets likely to remain strong in the coming years.
