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Zip Code 90706: Bellflower's Rising 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 90706, located in Bellflower, California, has experienced significant changes in its housing market over the past decade. This diverse urban community in Los Angeles County has seen a slight decline in homeownership rates, while average home prices and rent have generally increased. The interplay between these factors has shaped the area's real estate landscape. Homeownership rates in zip code 90706 have remained relatively stable, fluctuating between 38% and 40% from 2013 to 2022. However, there has been a slight overall decline, from 39% in 2013 to 38% in 2021, before returning to 39% in 2022. During this same period, average home prices have shown a significant upward trend. In 2013, the average home price was $331,365, which steadily increased to $741,268 by 2022, representing a remarkable 123.7% increase over nine years. This inverse relationship suggests that rising home prices may be contributing to the slight decrease in homeownership rates, as fewer residents can afford to purchase homes in the area.
Federal interest rates have influenced homeownership trends in zip code 90706. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.09% to 0.4%), homeownership rates remained stable at 39%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates showed slight fluctuations but generally remained around 39-40%. The dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight decrease in homeownership to 38%, possibly due to economic uncertainties during the pandemic outweighing the benefits of low interest rates.
The percentage of renters in zip code 90706 has shown a slight increase, from 61% in 2013 to 62% in 2021, before returning to 61% in 2022. This trend corresponds with a steady rise in average rent prices. In 2013, the average rent was $1,301, which increased to $1,465 by 2022, representing a 12.6% increase over nine years. The population in the zip code has fluctuated during this period, from 76,778 in 2013 to 78,173 in 2022, potentially contributing to the demand for rental properties and the subsequent increase in rent prices.
In 2023 and 2024, the housing market in zip code 90706 continued to evolve. The average home price in 2023 was $743,638, showing a slight increase from 2022. In 2024, the average home price further rose to $778,825, indicating a continued upward trend in property values. Notably, federal interest rates increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 90706 may continue to rise over the next five years, potentially reaching around $850,000 to $900,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,700 to $1,800 per month in the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 90706 has experienced a slight decrease in homeownership rates alongside significant increases in average home prices over the past decade. Renter percentages have marginally increased, corresponding with rising average rent prices. The interplay between federal interest rates, housing prices, and homeownership rates highlights the complex dynamics of the local real estate market. As the area continues to evolve, it will be crucial to monitor these trends and their impact on the community's housing landscape.
