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Zip Code 91201: Soaring Home Values and Shifting Ownership Trends in Glendale, California
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 91201, located in Glendale, California, has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the evolving real estate landscape of this community. The homeownership rate in zip code 91201 has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 34%, which decreased to 27% by 2019. However, there was a slight recovery to 32% in 2022. This trend coincides with substantial increases in average home prices. The average home price in 2013 was $523,935, which more than doubled to $1,203,392 by 2022, representing a 129.7% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained extremely low, ranging from 0.09% to 0.4%. During this period, homeownership rates in zip code 91201 remained relatively stable at around 31-34%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates declined to 27%. The sudden drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight increase in homeownership to 29%, likely due to more affordable financing options.
Renter percentages in zip code 91201 have generally increased from 2013 to 2022, mirroring the decline in homeownership. The renter-occupied percentage rose from 66% in 2013 to a peak of 73% in 2019, before slightly decreasing to 68% in 2022. Average rent prices have also shown an upward trend, increasing from $1,436 in 2013 to $1,934 in 2022, a 34.7% rise. It's worth noting that the population in this zip code has decreased from 23,283 in 2013 to 22,112 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, the housing market in zip code 91201 continued to evolve. The average home price in 2023 was $1,209,168, showing a slight increase from 2022. In 2024, the average home price further rose to $1,259,092, indicating a continued upward trend in property values. Concurrently, federal interest rates increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and market dynamics.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 91201 are likely to continue their upward trajectory, potentially reaching around $1.5 million by 2029. However, the rate of increase may slow down due to higher interest rates and potential market saturation. Average rent prices are also expected to rise, possibly reaching $2,300-$2,500 per month by 2029, driven by inflation and the ongoing demand for rental properties in this urban area.
In summary, zip code 91201 has experienced a significant shift in its housing market over the past decade. The area has seen a general trend of declining homeownership rates, coupled with substantial increases in average home prices and rent. The interplay between federal interest rates, housing affordability, and demographic changes has shaped these trends. As we move forward, the community is likely to see continued growth in property values and rental costs, potentially affecting the area's socioeconomic composition and housing accessibility.
