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Zip Code 90808: Long Beach's Suburban Gem Sees Soaring Home Values and Ownership Rates
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 90808, located in Long Beach, California, has experienced significant changes in homeownership and housing prices over the past decade. This analysis explores the trends in ownership percentages, average home prices, and average rent prices, providing insights into the evolving real estate landscape of this coastal community. From 2013 to 2022, the homeownership rate in zip code 90808 increased from 78% to 82%. This upward trend coincided with substantial growth in average home prices. In 2013, the average home price was $491,018, and by 2022, it had nearly doubled to $972,273, representing a 98% increase over this period. The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite historically low interest rates from 2013 to 2020, ranging from 0.08% to 0.4%, the homeownership rate remained relatively stable at 77-78%. However, as interest rates began to rise in 2021 and 2022, reaching 1.68% by the end of 2022, homeownership actually increased to 82%. This suggests that factors beyond interest rates, such as local economic conditions or housing supply, may have played a more significant role in driving homeownership in this area.
Conversely, the percentage of renters in zip code 90808 decreased from 22% in 2013 to 18% in 2022. During this same period, average rent prices experienced substantial growth. In 2013, the average rent was $1,829, and by 2022, it had risen to $2,141, marking a 17% increase. This upward trend in rent prices, coupled with the decreasing percentage of renters, may indicate a shift towards homeownership as renting became less affordable relative to buying in this area.
Looking at the most recent data, the average home price in zip code 90808 slightly decreased to $966,705 in 2023 but is projected to rebound to $1,013,796 in 2024. This represents a 4.9% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying affordability and potentially influence future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 90808 will continue to rise, potentially reaching $1,200,000 by 2029. This projection is based on the historical growth rate and current market conditions. For rent prices, the forecast suggests a continued upward trend, with average rents potentially approaching $2,500 by 2029.
In summary, zip code 90808 has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. The area has shown resilience in maintaining high homeownership rates even in the face of rising interest rates and home prices. The inverse relationship between declining renter percentages and increasing rent prices suggests a market where homeownership has become an increasingly attractive option. As we look to the future, the real estate market in this Long Beach zip code is poised for continued growth, with both home prices and rent prices expected to maintain their upward trajectories.
