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Zip Code 91203: Rising Home Values and Declining Ownership 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 91203, located in Glendale, California, has experienced significant changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates, alongside fluctuations in average home prices and rent costs. The overall trend indicates a decrease in homeownership and an increase in both average home prices and average rent prices.
The homeownership rate in zip code 91203 has shown a consistent downward trend from 2013 to 2022. In 2013, 28% of residents were homeowners, but this figure dropped to 20% by 2022. During this same period, average home prices in the area saw a substantial increase. In 2013, the average home price was $348,773, which rose to $786,011 by 2022, representing a 125% increase over nine years. This inverse relationship suggests that as home prices climbed, fewer residents were able to afford homeownership.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.4%), homeownership rates still declined from 28% to 22%. This suggests that despite favorable borrowing conditions, other factors such as rapidly increasing home prices may have outweighed the benefits of low interest rates for potential homebuyers in this zip code.
As homeownership declined, the percentage of renters in zip code 91203 increased from 72% in 2013 to 80% in 2022. Concurrently, average rent prices rose significantly. In 2013, the average rent was $1,286 per month, which increased to $2,240 by 2022, a 74% rise over nine years. This trend aligns with the growing demand for rental properties as fewer residents became homeowners. The population in the zip code also grew from 13,707 in 2013 to 17,459 in 2022, potentially contributing to increased rental demand and prices.
Looking at more recent data, the average home price in zip code 91203 decreased slightly to $772,096 in 2023 but is projected to rise again to $792,108 in 2024. This slight dip and subsequent increase occur alongside higher interest rates, with the federal interest rate reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying decisions in the coming years.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in both average home prices and average rent prices in zip code 91203. Based on historical data and current economic conditions, average home prices could potentially reach around $900,000 by 2029, while average rent prices might exceed $2,800 per month. However, these projections are subject to various economic factors and market conditions.
In summary, zip code 91203 has experienced a significant shift towards a renter-majority population, with homeownership rates declining as average home prices and rent costs have risen substantially. The interplay between federal interest rates, population growth, and housing affordability has shaped these trends. As the area continues to evolve, it's likely to see further increases in both home values and rental costs, potentially maintaining its status as a predominantly renter-occupied neighborhood.
