Loading Content...
Average Home Values and Ownership in Zip Code 07206: A Decade of Significant Growth
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 07206, located in Elizabeth, New Jersey, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This urban area has seen a gradual shift in its housing market dynamics, with notable trends in both ownership and rental sectors.
The homeownership rate in zip code 07206 has shown a modest increase from 22% in 2013 to 27% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $131,342, which steadily climbed to $375,670 by 2022, representing a remarkable 186% increase over nine years. The most significant jumps occurred between 2017 and 2022, with annual increases often exceeding 10%.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.40%), homeownership rates remained stable at 22-23%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership paradoxically increased to 27%. This suggests that other factors, such as local economic conditions or housing policies, may have had a stronger influence on homeownership in this zip code than national interest rates alone.
The rental market in zip code 07206 has also seen notable changes. The percentage of renters decreased slightly from 78% in 2013 to 73% in 2022. Despite this decrease, average rent prices have risen steadily. In 2013, the average rent was $1,197, which increased to $1,249 by 2022, a 4.3% rise. The population growth from 25,829 in 2013 to 28,771 in 2022 likely contributed to the sustained demand for rentals, keeping rent prices on an upward trajectory despite the slight decrease in the renter percentage.
Looking at the most recent data, the average home price in zip code 07206 reached $416,121 in 2023 and further increased to $454,442 in 2024. This represents a significant 10.8% and 9.2% year-over-year increase in 2023 and 2024, respectively. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis. These high interest rates could potentially 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 07206 will continue to rise, albeit at a potentially slower rate due to the high interest rate environment. By 2029, average home prices could reach approximately $600,000 to $650,000, assuming a moderated annual growth rate of 5-7%. For average rent prices, we project a continued steady increase, potentially reaching $1,400 to $1,500 per month by 2029, based on historical trends and anticipated population growth.
In summary, zip code 07206 has experienced a notable increase in homeownership rates and substantial growth in average home prices over the past decade. The rental market, while seeing a slight decrease in the percentage of renters, has maintained an upward trend in average rent prices. The recent surge in both home prices and interest rates presents new challenges and opportunities for the local housing market. As the area continues to evolve, these trends will likely shape the future of housing affordability and accessibility in this Elizabeth neighborhood.
