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Zip Code 91606: Rising Home Values and Homeownership Trends 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 91606, located in Los Angeles, California, presents an intriguing case study of homeownership and rental trends. This area has experienced significant fluctuations in ownership percentages and notable increases in both average home prices and average rent prices over the past decade.
The homeownership rate in zip code 91606 has shown a gradual increase from 29% in 2016 to 33% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $342,466, which steadily climbed to $877,557 by 2022, representing a remarkable 156% increase over this period. The most significant year-over-year jump occurred between 2020 and 2021, with average home prices surging from $676,259 to $783,520, a 15.9% increase in just one year.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2020, interest rates remained historically low, ranging from 0.09% to 2.16%. This period of low interest rates coincided with the gradual increase in homeownership in zip code 91606. The low-interest environment likely made mortgages more affordable, encouraging more residents to purchase homes despite rising prices. However, the sharp increase in interest rates to 1.68% in 2022 and 5.02% in 2023 may have contributed to the slight dip in homeownership from 34% in 2021 to 33% in 2022.
Renter percentages in zip code 91606 have slightly decreased from 71% in 2016 to 67% in 2022, inversely mirroring the homeownership trend. Average rent prices have shown a general upward trend, rising from $1,260 in 2013 to $1,452 in 2022, a 15.2% increase. Interestingly, the population in this zip code has fluctuated, peaking at 43,615 in 2011 and settling at 41,006 in 2022. The combination of rising rent prices and a relatively stable population suggests a tightening rental market, potentially driving some residents towards homeownership despite increasing home prices.
Looking at the most recent data, average home prices in zip code 91606 experienced a slight decrease from $877,557 in 2022 to $875,063 in 2023, marking a 0.3% decline. However, prices are projected to rebound in 2024, reaching $907,726, a 3.7% increase from 2023. This uptick occurs despite the continued rise in federal interest rates, which reached 5.33% in 2024, potentially indicating strong underlying demand in this Los Angeles neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 91606 to continue their upward trajectory, potentially reaching around $1,050,000 by 2029. This projection is based on the historical growth rate and assumes consistent economic conditions. Average rent prices are also expected to rise, potentially reaching approximately $1,700 per month by 2029, reflecting the ongoing demand for housing in this area.
In summary, zip code 91606 has demonstrated a gradual shift towards homeownership amidst rapidly rising home prices. The area has shown resilience in its housing market, with both ownership rates and property values increasing despite fluctuations in population and economic conditions. The rental market remains robust, with steadily increasing average rents. As we look to the future, this Los Angeles neighborhood is poised for continued growth in both home values and rental prices, reflecting its desirability and the broader trends in the Los Angeles real estate market.
