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Zip Code 91601: Rising Home Values and Shifting Ownership Patterns in Los Angeles Entertainment Hub
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 91601, located in Los Angeles, California, has experienced significant changes in its housing market over the past decade. This area, known for its vibrant arts scene and proximity to major entertainment studios, has seen fluctuations in homeownership rates and substantial increases in both average home prices and average rent prices.
The homeownership rate in zip code 91601 has remained relatively stable, with minor fluctuations between 16% and 19% from 2013 to 2022. Despite this stability, average home prices have shown a dramatic upward trend. In 2010, the average home price was $393,459, which more than doubled to $962,973 by 2022, representing a 144.7% increase over 12 years. This substantial rise in home prices, coupled with the relatively low and stable homeownership rate, suggests that while property values have appreciated significantly, it has not translated into increased homeownership in the area.
Federal interest rates have played a role in shaping homeownership trends in zip code 91601. From 2010 to 2021, interest rates remained historically low, ranging from 0.08% to 2.16%. Despite these favorable borrowing conditions, the homeownership rate in the area did not see significant growth. This could be attributed to the rapid increase in home prices outpacing the benefits of low interest rates, making it challenging for potential buyers to enter the market.
Renter occupancy has been the dominant housing trend in zip code 91601, consistently accounting for over 80% of occupied housing units. The percentage of renters increased slightly from 81% in 2014 to 83% in 2022. During this period, average rent prices also saw a substantial increase. In 2013, the average rent was $1,366, which rose to $1,629 by 2022, marking a 19.3% increase over nine years. This upward trend in both renter occupancy and rent prices suggests a strong demand for rental properties in the area, possibly driven by the high cost of homeownership.
In 2023, the average home price in zip code 91601 experienced a slight decrease to $953,623, down 1% from the previous year. This minor correction was followed by a modest increase to $976,604 in 2024, representing a 2.4% year-over-year growth. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and further to 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis. These higher interest rates could potentially impact future home buying activity and price appreciation in the area.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 91601 may continue to appreciate, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach around $1.1 million to $1.2 million, assuming a conservative annual growth rate of 3-4%. Average rent prices are also likely to continue their upward trajectory, potentially reaching $1,800 to $1,900 per month within the next five years, based on historical growth patterns.
In summary, zip code 91601 has witnessed a significant increase in property values and rent prices over the past decade, while maintaining a high proportion of renters. The area's desirability, coupled with broader economic factors, has driven up housing costs, potentially making homeownership less attainable for many residents. As interest rates rise and home prices continue to appreciate, albeit at a slower pace, the rental market is likely to remain strong in this Los Angeles neighborhood.
