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Zip Code 91402: Rising Home Values and Shifting Ownership in Los Angeles Urban Neighborhood
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 91402, located in Los Angeles, California, has experienced significant shifts in housing trends over the past decade. This analysis explores the interplay between homeownership rates, average home prices, and average rent prices in this vibrant community. The homeownership rate in zip code 91402 has shown a slight decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 36%, which gradually decreased to 33% by 2019. However, there was a modest recovery in recent years, with the rate increasing to 36% in 2022. Concurrently, average home prices in the area have experienced substantial growth. In 2013, the average home price was $241,174, which more than doubled to $671,223 by 2022, representing a 178% increase over nine years.
The relationship between federal interest rates and homeownership rates in zip code 91402 shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates saw a slight decrease from 36% to 34%. However, as interest rates began to rise more significantly from 2017 to 2019 (1.00% to 2.16%), homeownership rates stabilized at 33%. Interestingly, when interest rates dropped sharply in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates began to recover, reaching 35% in 2021 and 36% in 2022, despite rising home prices.
Renter percentages in zip code 91402 have shown an inverse relationship to homeownership rates, naturally. The percentage of renters increased from 64% in 2013 to a peak of 67% in 2017 and 2018, before slightly decreasing to 64% in 2022. Average rent prices have steadily increased over this period, rising from $1,283 in 2013 to $1,447 in 2022, an increase of 12.8%. It's worth noting that despite the population decrease from 71,910 in 2013 to 67,951 in 2022, rent prices continued to rise, suggesting strong demand for rental properties in the area.
In 2023 and 2024, we see a continuation of the upward trend in average home prices in zip code 91402. The average home price reached $680,427 in 2023 and further increased to $709,288 in 2024, representing a 4.2% year-over-year growth. This growth occurred despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen since 2007.
Looking ahead, predictive models suggest that average home prices in zip code 91402 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We can expect average home prices to potentially reach around $800,000 by 2029. Average rent prices are also projected to increase, possibly surpassing $1,700 per month within the next five years, driven by continued demand for rental properties in this urban Los Angeles neighborhood.
In summary, zip code 91402 has demonstrated resilience in its housing market, with rising average home and rent prices despite fluctuations in homeownership rates. The area has seen substantial appreciation in property values, nearly tripling over a decade, while maintaining a predominantly renter-occupied housing stock. The recent uptick in homeownership rates, despite rising interest rates, suggests a strong desire for homeownership in this community, which may continue to influence market dynamics in the coming years.
