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Average Home Values and Ownership in Zip Code 07060: A Decade of Change in Plainfield, NJ
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 07060, located in Plainfield, New Jersey, has experienced significant changes in its housing market over the past decade. This area has seen a shift towards a renter-majority population, coupled with fluctuations in average home prices and rent costs. The ownership percentage has steadily declined while average home prices have shown a general upward trend, particularly in recent years.
The homeownership rate in zip code 07060 has consistently decreased from 46% in 2013 to 40% in 2022. During this same period, average home prices have shown a notable increase. In 2013, the average home price was $180,731, which rose to $402,712 by 2022, representing a 123% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for many residents in the area.
The federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relatively stable homeownership rates around 43-45%. However, as interest rates began to rise from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, homeownership rates continued to decline. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership declined, the percentage of renters in zip code 07060 increased from 54% in 2013 to 60% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. The average rent was $1,246 in 2013, fluctuated over the years, and stood at $1,277 in 2022, representing only a modest 2.5% increase over nine years. This relatively stable rent price, despite the increasing renter population, could be attributed to various factors such as local rent control measures or an increase in rental unit supply.
In 2023 and 2024, the housing market in zip code 07060 continued to evolve. The average home price reached $434,639 in 2023 and further increased to $469,380 in 2024, showing a continued upward trajectory. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability in the area.
Looking ahead, predictive models suggest that the upward trend in average home prices is likely to continue over the next five years, potentially reaching or surpassing the $500,000 mark. Rent prices, which have shown more stability historically, may see moderate increases, potentially approaching or exceeding $1,400 per month on average by 2029.
In summary, zip code 07060 has witnessed a clear shift towards a renter-majority population, with homeownership rates declining as average home prices have substantially increased. The interplay between federal interest rates, home prices, and rental market dynamics has shaped a housing landscape that favors renting over owning for a growing portion of the population. As home prices continue to rise and interest rates remain elevated, this trend may persist, potentially leading to further changes in the area's demographic and housing composition.
