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Average Home Values and Ownership in Zip Code 07017: East Orange's Housing Market Evolution
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 07017, located in East Orange, New Jersey, has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. This densely populated urban area has shown resilience and growth, with its population increasing from 34,860 in 2010 to 38,329 in 2022.
The homeownership rate in zip code 07017 has remained relatively stable, with minor fluctuations between 26% and 31% from 2013 to 2022. Interestingly, the average home prices have shown a more dramatic trend. In 2010, the average home price was $208,504, which declined to a low of $134,413 in 2014. However, since then, there has been a substantial increase, with the average home price reaching $379,419 in 2022. This represents a remarkable 182% increase from the 2014 low.
The relationship between federal interest rates and homeownership rates in this zip code is not as straightforward as one might expect. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 1.83%), the homeownership rate remained relatively stable. This suggests that other factors, such as local economic conditions or housing supply, may have a more significant impact on homeownership in this area than interest rates alone.
The rental market in zip code 07017 has shown a slight upward trend in both occupancy and prices. The percentage of renters increased from 71% in 2013 to 74% in 2020, before slightly decreasing to 69% in 2022. Average rent prices have generally increased over time, rising from $1,092 in 2013 to $1,179 in 2022, representing an 8% increase. This trend aligns with the growing population, which increased by about 10% from 2013 to 2022, likely contributing to the demand for rental properties.
Looking at the most recent data, the average home price in zip code 07017 continued its upward trajectory, reaching $406,343 in 2023 and $436,810 in 2024. This represents a 15% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 07017 will continue to rise, albeit at a potentially slower rate due to higher interest rates. Projections suggest that by 2029, average home prices could reach approximately $550,000 to $600,000. For average rent prices, the forecast indicates a steady increase, potentially reaching $1,350 to $1,450 per month by 2029.
In summary, zip code 07017 has demonstrated a remarkable recovery and growth in its housing market since 2014. The area has maintained a relatively stable balance between homeowners and renters, with a slight trend towards increased renting. Average home prices have shown significant appreciation, particularly in recent years, while rent prices have increased more modestly. The interplay between population growth, economic factors, and interest rates will likely continue to shape the housing landscape in this East Orange zip code in the coming years.
