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Average Home Values and Ownership in Zip Code 07020: Edgewater's Waterfront Housing Market
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
Edgewater, located in zip code 07020 in New Jersey, has experienced significant demographic and housing market changes over the past decade. This densely populated area along the Hudson River has seen a notable shift in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Edgewater has shown an upward trend, particularly in recent years. In 2013, the percentage of owner-occupied housing units was 36%. This figure remained relatively stable until 2020 when it began to increase more rapidly, reaching 44% by 2022. This growth in homeownership coincides with fluctuations in average home prices. The average home price in the area rose from $464,641 in 2010 to $633,916 in 2022, representing a 36.4% increase over 12 years. However, this growth was not linear, with some years showing slight decreases or plateaus in average prices.
The relationship between federal interest rates and homeownership rates in Edgewater appears to follow the general trend observed nationwide. As interest rates remained historically low between 2010 and 2021, ranging from 0.08% to 2.16%, the homeownership rate in Edgewater gradually increased. The significant jump in homeownership from 41% in 2020 to 44% in 2021 and 2022 coincided with extremely low interest rates of 0.08% and 1.68% respectively, likely making home purchases more accessible to potential buyers.
Renter percentages in Edgewater have correspondingly decreased as homeownership rates increased. In 2013, 64% of housing units were renter-occupied, which gradually declined to 56% by 2022. Despite this decrease in the proportion of renters, average rent prices have shown a general upward trend. The average rent increased from $1,979 in 2013 to $2,314 in 2022, a 16.9% rise over nine years. This increase in rent prices, despite a decreasing percentage of renters, may be attributed to the overall population growth in the area, which rose from 11,256 in 2013 to 13,788 in 2022, creating sustained demand for rental properties.
Looking at the most recent data, the average home price in Edgewater continued to rise, reaching $641,916 in 2023 and $664,512 in 2024. This upward trajectory persists despite the significant increase in federal interest rates, which climbed to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially slow down the growth in homeownership rates observed in previous years, as higher borrowing costs may make home purchases less affordable for some buyers.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in both average home prices and rent prices in Edgewater, albeit at a potentially slower rate due to higher interest rates. Average home prices are projected to reach approximately $720,000 by 2029, while average rent prices could increase to around $2,600 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, Edgewater (07020) has experienced a notable increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the proportion of renters. Despite this shift, average rent prices have continued to rise, likely driven by population growth and the area's desirability. The recent spike in interest rates may impact these trends moving forward, potentially slowing the growth in homeownership and moderating the increases in both home prices and rents. The interplay between these factors will continue to shape the housing market in Edgewater in the coming years.
