Drought in the mid-19th century resulted in economic hardship for the Verdugo family, which eventually compelled them to auction off Rancho San Rafael in 1869 for $3,500 over an unpaid loan.

In 1885, during the 1880s land boom, it was sold to George Morgan and Albert Judson, who combined it with other parcels they had purchased from the Verdugo family to create the Highland Park tract in 1886.

[5][3] Two rail lines were built to Highland Park, which later helped the town to survive the burst of the property bubble.

In the early 20th century, Highland Park and neighboring Pasadena became enclaves for artists and intellectuals who were adherents of the Arts and Crafts movement.

[6] With the completion of Arroyo Seco Parkway in 1940, Highland Park began to experience white flight, losing residents to the Mid-Wilshire district and newer neighborhoods in Temple City and in the San Fernando Valley.

At the beginning of the 21st century, then-City Attorney Rocky Delgadillo, a Highland Park native, intensified efforts to rid Northeast Los Angeles of the Avenues.

[11] Law enforcement, coupled with community awareness efforts such as the annual Peace in the Northeast March, have led to a drastic decrease in violent crime in the 2010s.

[21] The benefits of Highland Park's 21st century economic revitalization have been experienced unevenly, bypassing many of the area’s longtime Latino residents.

[25] According to the 2020 United States census, the ethnic composition of Highland Park in 2020 was 58.7% Latino, 21.8% Non-Hispanic White, 13.4% Asian, 1.8% Black, and 4.3% others.

[36] On October 17, 1960, a newly constructed Arroyo Seco Library was opened to the public, replacing the original building after 46 years of service.

Motion pictures that have been shot in Highland Park include: Television and feature films have used the old Los Angeles Police Department building in the 6000 block of York Boulevard.

[82] Smith Estate, an historic hilltop Victorian house, has been a shooting location for horror films such as Spider Baby, Silent Scream and Insidious: Chapter 2.