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Average Home Values and Ownership in Zip Code 07058: Pine Brook's Resilient 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
Pine Brook, located in zip code 07058 in New Jersey, has experienced significant shifts in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the local real estate landscape.
The ownership percentage in Pine Brook has shown notable fluctuations between 2013 and 2022. Starting at 58% in 2013, it dropped to a low of 47% in 2017 before rebounding to 60% in 2022. During this same period, average home prices in the area have generally trended upward. In 2013, the average home price was $550,816, which increased to $748,742 by 2022, representing a 36% rise over nine years. The relationship between ownership rates and home prices appears complex, with no clear direct correlation. For instance, despite the dip in ownership in 2017, home prices continued to rise, suggesting other factors influencing the market.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.40%), homeownership rates in Pine Brook actually decreased from 58% to 53%. However, as interest rates began to rise more significantly from 2017 onwards, homeownership rates showed an overall upward trend, reaching 60% by 2022 when the federal interest rate was 1.68%. This pattern suggests that local factors may have had a stronger influence on homeownership than national interest rates in this particular area.
Renter percentages in Pine Brook have inversely mirrored the homeownership trends, ranging from 40% in 2013 to a peak of 50% in 2017, before settling at 40% in 2022. Average rent prices have shown a steady increase over this period, rising from $1,751 in 2013 to $1,983 in 2022, an increase of about 13%. Interestingly, the population of Pine Brook decreased from 5,462 in 2013 to 5,126 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, average home prices in Pine Brook continued their upward trajectory, reaching $787,642 in 2023 and $831,588 in 2024. This represents a significant increase of 11% from 2022 to 2024. Concurrently, federal interest rates rose sharply 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 forecast potential 5-year trends for average home and rent prices in Pine Brook. If the current growth rate persists, average home prices could potentially reach around $1 million by 2029. Average rent prices, which have shown more modest growth, might increase to approximately $2,300 per month in the same timeframe. However, these projections are subject to various economic factors and market conditions.
In summary, Pine Brook has experienced a resurgence in homeownership rates in recent years, despite rising home prices and increasing interest rates. The rental market has remained relatively stable, with gradual increases in average rent prices. The continued rise in home values, even in the face of higher interest rates, suggests a strong demand for housing in this area. These trends indicate a dynamic and resilient real estate market in Pine Brook, with potential for further growth in both the homeownership and rental sectors.
