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Zip Code 91750: La Verne's Shifting Home Values and Ownership Trends
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
La Verne, California, zip code 91750, is a suburban community known for its picturesque setting and proximity to the San Gabriel Mountains. Over the past decade, this area has experienced notable shifts in homeownership rates and property values, reflecting broader economic trends and local market dynamics.
The homeownership rate in La Verne has shown a gradual decline from 2013 to 2022. In 2013, 74% of residents were homeowners, but by 2022, this figure had decreased to 69%. Concurrently, average home prices in the area have seen significant growth. In 2013, the average home price was $452,693, and by 2022, it had risen to $905,648, representing a substantial 100% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in La Verne. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1% to 0.4%. During this period, homeownership rates in La Verne remained relatively stable at 73-74%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline, dropping to 69% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The renter population in La Verne has increased correspondingly with the decline in homeownership. In 2013, 26% of residents were renters, and by 2022, this percentage had grown to 31%. Average rent prices, however, have not shown a consistent upward trend. In 2013, the average rent was $1,714, and it fluctuated over the years, reaching $1,829 in 2022. This represents a modest 6.7% increase over nine years, significantly lower than the growth in home prices. The population of La Verne has remained relatively stable during this period, with only minor fluctuations, suggesting that changes in rental trends are more likely influenced by economic factors rather than population growth.
In 2023, the average home price in La Verne slightly decreased to $900,423, marking a 0.58% decline from the previous year. However, 2024 has seen a rebound, with average home prices rising to $944,831, a 4.93% increase from 2023. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership trends in the area.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in La Verne may continue to rise, 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. Average rent prices are likely to continue their gradual upward trend, potentially reaching $2,200 to $2,400 per month in the same timeframe.
In summary, La Verne's housing market has been characterized by rising home values, a gradual shift towards renting, and the significant influence of federal interest rates on homeownership trends. The recent uptick in home prices, coupled with higher interest rates, suggests a dynamic and potentially challenging market for prospective homebuyers in the coming years. Meanwhile, the rental market appears to be growing steadily, reflecting the changing housing preferences and economic realities of the area's residents.
