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Zip Code 91602: Rising Home Values and Shifting Ownership Trends 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 91602, located in Los Angeles, California, has experienced significant changes in its real estate landscape over the past decade. This area, known for its vibrant entertainment industry connections, has seen fluctuations in homeownership rates and substantial increases in both average home prices and average rent prices.
The homeownership rate in zip code 91602 has shown a gradual decline from 2013 to 2022. In 2013, 36% of residents owned their homes, but by 2022, this figure had dropped to 33%. This decline in homeownership coincided with a dramatic increase in average home prices. In 2013, the average home price was $533,740, but by 2022, it had more than doubled to $1,092,255. This sharp rise in home prices likely contributed to the decreasing homeownership rate, as purchasing a home became increasingly unaffordable for many residents.
The relationship between federal interest rates and homeownership rates in this zip code is complex. Despite historically low interest rates from 2013 to 2021, ranging from 0.08% to 0.40%, homeownership rates continued to decline. This suggests that other factors, such as the rapidly increasing home prices, may have had a stronger influence on homeownership than low interest rates in this particular area.
As homeownership decreased, the percentage of renters in zip code 91602 increased from 64% in 2013 to 67% in 2022. This shift towards renting coincided with a steady rise in average rent prices. In 2013, the average rent was $1,582, which increased to $1,886 by 2022, representing a 19.2% increase over nine years. The growing population, from 16,660 in 2013 to 18,227 in 2022, likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, the average home prices in zip code 91602 showed a slight dip followed by a rebound. The average home price in 2023 was $1,073,620, a 1.7% decrease from 2022. However, in 2024, the price increased to $1,106,581, a 3.1% rise from 2023. This recent trend occurs in the context of higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially influencing buyer behavior and market dynamics.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and average rent prices for zip code 91602 over the next five years. Average home prices are expected to increase by approximately 5-7% annually, potentially reaching around $1.4 million by 2029. Average rent prices are likely to rise by 3-4% per year, potentially surpassing $2,200 by 2029.
In summary, zip code 91602 has experienced a significant shift towards renting, driven by rapidly increasing home prices that have outpaced many residents' ability to purchase. Despite low interest rates for much of the past decade, homeownership rates declined. The area has seen substantial appreciation in property values and steady increases in rent prices, trends that are likely to continue in the coming years, albeit potentially at a more moderate pace due to higher interest rates and market adjustments.
