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Zip Code 91604: Rising Home Values and Shifting Ownership Patterns in Los Angeles
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 91604, located in Los Angeles, California, has experienced significant changes in its housing market over the past decade. This area, known for its proximity to Studio City and the entertainment industry, has seen a general trend of increasing average home prices and average rent prices, while homeownership rates have fluctuated slightly.
The ownership percentage in zip code 91604 has shown minor variations over the years, with a slight overall decline. In 2013, the homeownership rate was 48%, which decreased to 44% by 2022. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $740,470, which more than doubled to $1,661,760 by 2022, representing a 124% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained very low, hovering around 0.1% to 0.4%. During this period, homeownership rates declined slightly from 48% to 44%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates remained relatively stable at 44-46%. This stability in homeownership rates despite rising interest rates may indicate other factors influencing the local housing market.
The renter percentage in zip code 91604 has shown a corresponding increase as homeownership rates decreased. In 2013, 52% of residents were renters, which increased to 56% by 2022. During this same period, average rent prices also saw a significant rise. The average rent price in 2013 was $1,802, which increased to $2,255 by 2022, representing a 25% increase. This trend aligns with the growing population in the area, which increased from 27,855 in 2013 to 31,754 in 2022, potentially driving up demand for rental properties.
Looking at more recent data, the average home price in zip code 91604 continued to rise in 2023, reaching $1,670,789. In 2024, it further increased to $1,731,267. These figures represent a 3.6% increase from 2022 to 2024. Notably, federal interest rates also saw a significant increase, rising from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. This substantial increase in interest rates could potentially impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in zip code 91604 will continue to rise, albeit at a potentially slower rate due to higher interest rates. Based on historical data and current market conditions, average home prices could reach approximately $2 million by 2029. Average rent prices are also expected to increase, potentially reaching around $2,700 by 2029, driven by population growth and the area's desirability.
In summary, zip code 91604 has experienced a significant increase in both average home prices and average rent prices over the past decade. Homeownership rates have slightly declined, while the renter population has grown. The area's popularity, coupled with broader economic factors such as interest rates, continues to shape its housing market dynamics. The recent sharp increase in interest rates may influence future trends in homeownership and property values in this desirable Los Angeles neighborhood.
