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Average Home Values and Ownership in Zip Code 07039: Roseland's Shifting 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
Roseland, located in zip code 07039 in New Jersey, has experienced significant changes in its housing market over the past decade. This area has seen a gradual shift in homeownership rates and notable fluctuations in average home prices and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Roseland has shown a slight decline from 2013 to 2022. In 2013, the percentage of owner-occupied homes stood at 93%, but by 2022, it had decreased to 87%. This 6% drop in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $594,614, which rose to $826,393 by 2022, representing a 39% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Roseland. From 2013 to 2016, interest rates remained exceptionally low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, only declining from 93% to 90%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates dropped more sharply, reaching 86% by 2019. The sudden drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) corresponded with a slight rebound in homeownership to 87% by 2022, illustrating how lower interest rates can stimulate home buying activity.
The renter population in Roseland has grown steadily from 2013 to 2022, increasing from 6% to 13% of the total occupied housing units. This trend aligns with the rise in average rent prices, which increased from $2,098 in 2013 to $2,725 in 2022, a 30% jump. The population growth from 29,425 in 2013 to 31,126 in 2022 likely contributed to the increased demand for rental properties, pushing up average rent prices.
In 2023 and 2024, Roseland saw continued growth in average home prices, reaching $854,210 in 2023 and $918,345 in 2024. This represents a 3.4% increase from 2022 to 2023 and a further 7.5% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, based on historical trends and current market conditions, we can expect average home prices in Roseland to continue their upward trajectory over the next five years. Projections suggest that by 2029, average home prices could reach approximately $1.1 million, assuming a consistent growth rate. Average rent prices are also likely to increase, potentially reaching around $3,200 per month by 2029, following the current trend of about 2% annual growth.
In summary, Roseland has experienced a gradual shift towards a higher proportion of renters, coupled with significant increases in both average home prices and average rent prices. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics of the local real estate market. As the area continues to grow and evolve, these trends are likely to shape the future of housing in this New Jersey community.
