Downey Home Prices: $888K, Up 1.3% — 3 ZIPs Analyzed (2026)

$887,559. That’s the typical home price in Downey right now, up 1.3% from a year ago. Prices have climbed seven months in a row after bottoming out last summer.

Quick answer: The average home price in Downey, CA is $887,559 as of February 2026, up 1.3% year over year according to Zillow.

Current Home Prices in Downey

The median sits near $888K. That’s roughly double the national median and slightly below the Los Angeles metro average. Home values in Downey range from about $814K in the city’s cheapest ZIP to $931K on its pricier north side.

The spread between the cheapest and most expensive ZIP is about $117K, or 14%. That’s a tight gap for a California city. Downey buyers don’t get the massive neighborhood-to-neighborhood price swings you see in Los Angeles proper.

One year ago the median was around $876K. Prices dipped into mid-summer 2025, then reversed. The $887K you see today is actually a new local high — higher than anything recorded in the 12-month window.

For context: Downey prices have added about $22K since July 2025. That’s a 2.6% gain in seven months. Annualized, that pace works out closer to 4.5% than the headline 1.3% YoY figure.

Downey Home Prices by Neighborhood

Three ZIP codes cover Downey. Here’s how they stack up.

Most Expensive

90240 tops the list at $930,560. Rent there averages $3,441 — a steep premium over the other two ZIPs and the clearest sign of higher-end housing stock.

90241 comes in second at $918,491. Rent is much lower at $2,244, which hints the ZIP has more older homes and apartment inventory pulling rent figures down even as sale prices stay high.

Most Affordable

90242 is the cheapest ZIP at $813,627, about $74K below the city median. Rent averages $2,166, roughly in line with 90241. If you’re shopping Downey on a budget, this is where to look.

Rent vs Buy in Downey

Average rent across the three Downey ZIPs comes to about $2,617 per month. That’s weighted evenly across the ZIPs, not by household count, but it’s a useful benchmark.

Compare that to the cost of buying the median $887,559 home. With 20% down ($177,512) and a 30-year mortgage at 7%, monthly principal and interest runs around $4,720. Add property tax ($925/month in LA County) and insurance ($150), and you’re at roughly $5,800 per month.

That gap — $5,800 to buy versus $2,617 to rent — is more than 2x. Even at the cheapest Downey ZIP, 90242, the math still favors renters. A $813K home at the same terms costs about $5,300 per month all-in, while rent runs $2,166.

For buyers, the breakeven depends on how long you stay and whether prices keep rising. At the current 2.6% over seven months pace, appreciation alone adds roughly $23K per year to a $887K home — which partially offsets the rent-buy gap, but doesn’t close it.

Renters are coming out ahead on cash flow. Buyers who stay five-plus years and catch continued price gains can still build equity, but the monthly premium is real.

Population Growth and Migration

Downey is losing residents. The city had 113,966 people in 2020 and 109,368 in 2024 — a drop of nearly 4,600 over four years, or 4%.

The decline has slowed. Downey lost about 2,400 residents between 2020 and 2021, then only 185 between 2023 and 2024. The outflow is tapering, but there’s no sign of a reversal.

How does that compare to other California cities?

Every nearby California city on this list grew. Downey is an outlier. What does that mean for housing? Shrinking populations usually translate to softer demand and flatter prices. Downey’s 1.3% YoY gain is modest by California standards — that’s consistent with the population trend. If more residents leave, expect price growth to stay muted.

Downey Housing Market Trends

Here’s the 12-month price trail.

Two distinct phases show up. From March to July 2025, prices slid from $876K to $865K — a drop of about $10K, or 1.2%. Then the trend flipped. Every month from August onward posted a gain.

The recovery has been steady. Monthly gains ranged from $539 (July to August) to $5,448 (November to December). No giant jumps, no setbacks. February 2026’s $887K is the highest reading in the series.

You can read this two ways. Optimists see seven months of consecutive gains and a new high. Pessimists note the full-year change is just 1.3% — a flat market dressed up by a summer dip.

Is Downey a Good Place to Buy in 2026?

Prices are rising, but slowly. Rent is less than half the monthly cost of buying. Population is shrinking. These facts pull in different directions for a buyer.

If you’re planning to stay long-term and want stability, Downey works. Price swings are small compared to volatile California markets. The 14% ZIP-to-ZIP spread means you have affordable and pricier options within the same city.

If you’re looking for appreciation, the math is less exciting. A 1.3% YoY gain doesn’t cover transaction costs in year one. You’d need several years of continued gains — or the recent 2.6% over seven months pace to continue — to come out ahead on a sale.

Sellers have the edge on pricing discipline. With only three ZIPs and a tight price band, there’s less room to negotiate than in a sprawling metro. But a shrinking population limits demand pressure.

The market leans neutral, tilting slightly toward sellers because of the recent upward trend.

Downey Housing Market Outlook for 2026-2027

The 3-month trend shows prices up roughly $12K from November 2025 to February 2026 — a pace near 1.4% per quarter. If that continues, Downey could test $900K by summer 2026.

The 7-month trend (August through February) adds about $21K, or 2.5%. Extrapolating that forward puts prices in the $910K-$920K range by late 2026.

Neither of these is a forecast — they’re projections based only on the monthly_trend data. Actual outcomes depend on interest rates, the metro economy, and whether population decline accelerates or stabilizes.

What the data does suggest: the summer 2025 bottom looks like a bottom, and the current momentum is positive. A buyer waiting for a dip in Downey has missed one recently. Whether another comes depends on factors outside this dataset.

Similar Markets in CA

• Long Beach — another LA metro city, good for comparing coastal pricing.
• Anaheim — similar Southern California suburb, different county.
• Riverside — inland option for buyers priced out of Downey.
• Fontana — cheaper San Bernardino County alternative.
• Los Angeles — the metro anchor, for context on how Downey stacks up.

Frequently Asked Questions

What is the average home price in Downey?

The average home price in Downey, CA is $887,559 as of February 2026. Values range from $813,627 in ZIP 90242 to $930,560 in ZIP 90240. That $117K spread is narrower than most California cities.

Are home prices going up or down in Downey?

Prices are up 1.3% year over year. After bottoming at $865,399 in July 2025, the market has posted seven consecutive monthly gains. February 2026 marked a new 12-month high.

Is it cheaper to rent or buy in Downey?

Renting wins on monthly cost. Average rent across Downey’s three ZIPs is about $2,617 per month. A mortgage on the $888K median home runs roughly $5,800 per month with 20% down, property tax, and insurance.

What is the most affordable neighborhood in Downey?

ZIP 90242 is the cheapest at $813,627 — about 8% below the $888K city median. Rent there averages $2,166 per month, similar to neighboring 90241 but with noticeably lower home prices.

Methodology

Home values are based on the Zillow Home Value Index (ZHVI), a smoothed measure of typical home values in the 35th to 65th percentile range. Rent estimates use the Zillow Observed Rent Index (ZORI). Population figures come from the U.S. Census Bureau Population Estimates Program (2020-2024 vintage). All datasets are publicly available. Housing data updated 2026-02-28.