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Average Home Values and Ownership in Garfield, NJ Zip Code 07026: A Decade of Growth Amid Rising Prices
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
Garfield, located in zip code 07026 in New Jersey, is a densely populated urban area that has experienced significant changes in homeownership rates and housing prices over the past decade. This analysis will explore the trends in ownership percentages, average home prices, and average rent prices, revealing interesting patterns in the local real estate market.
The ownership percentage in Garfield has shown a notable increase from 2013 to 2022. In 2013, the homeownership rate was 37%, and it steadily rose to 47% by 2022. This 10 percentage point increase indicates a growing trend towards homeownership in the area. Concurrently, average home prices have also seen a substantial rise. In 2013, the average home price was $270,384, and by 2022, it had climbed to $466,562, representing a 72.6% increase over this period. This parallel growth in homeownership rates and average home prices suggests a strong demand for housing in the area, despite the rising costs.
The relationship between federal interest rates and homeownership rates in Garfield presents an interesting dynamic. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), the homeownership rate remained stable at 37%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, the homeownership rate actually increased to 47%. This trend contradicts the typical expectation that higher interest rates discourage homeownership, suggesting that other local factors may have had a more significant influence on homebuying decisions in this area.
Regarding rental trends, the percentage of renters in Garfield has decreased from 63% in 2013 to 53% in 2022, inversely mirroring the rise in homeownership. Despite this decrease in the renter population, average rent prices have shown a consistent upward trend. In 2013, the average rent was $1,261, and by 2022, it had increased to $1,364, a 8.2% rise. This increase in rent prices, coupled with a decreasing renter population, could indicate a tightening rental market with potentially higher-quality or more desirable rental properties becoming available.
In 2023 and 2024, the average home prices in Garfield continued to rise, reaching $484,794 in 2023 and $508,903 in 2024. This represents a 9% increase from 2022 to 2024. Interestingly, this price growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This sustained price growth in the face of higher interest rates suggests a robust demand for housing in the area, possibly driven by factors such as local economic strength or limited housing supply.
Looking ahead, based on the observed trends, we can project that average home prices in Garfield are likely to continue their upward trajectory over the next five years. If the current rate of increase persists, average home prices could potentially reach around $600,000 by 2029. Similarly, average rent prices are expected to maintain their gradual upward trend, potentially reaching approximately $1,500 per month in the same timeframe. However, these projections assume relatively stable economic conditions and housing market dynamics.
In summary, Garfield (07026) has experienced a significant shift towards homeownership over the past decade, accompanied by substantial increases in both average home prices and rent prices. The area has demonstrated resilience in its housing market, with prices continuing to rise even in the face of increasing interest rates. These trends suggest a strong local real estate market with sustained demand for both owned and rental properties.
