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Average Home Values and Ownership in Zip Code 07306: Jersey City's Resilient Urban 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
Zip code 07306, located in Jersey City, New Jersey, is a densely populated urban area covering 2.96 square miles. This zip code has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices over the past decade, reflecting the dynamic nature of its real estate market.
The homeownership rate in zip code 07306 has remained relatively stable, hovering around 22-24% from 2013 to 2022. Despite this stability, average home prices have shown a dramatic increase. In 2013, the average home price was $211,204, which more than doubled to $480,800 by 2022, representing a 127.6% increase over nine years. This substantial rise in home prices, coupled with the relatively unchanged homeownership rate, suggests that while property values have appreciated significantly, it hasn't necessarily translated into increased homeownership.
Federal interest rates have played a role in shaping homeownership trends in this area. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate slightly decreased from 23% to 21%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership stabilized at 22%. Interestingly, when interest rates dropped again in 2020 and 2021 (to 0.38% and 0.08% respectively), homeownership increased slightly to 23%, possibly reflecting increased affordability of mortgages.
The renter population in zip code 07306 has consistently been the majority, comprising 76-79% of occupied housing units from 2013 to 2022. Average rent prices have shown a steady increase over this period, rising from $1,144 in 2013 to $1,293 in 2022, an increase of 13%. This rise in rent prices has been accompanied by fluctuations in the area's population, which peaked at 56,112 in 2021 before slightly decreasing to 55,565 in 2022. The high renter percentage and increasing rent prices suggest a strong demand for rental properties in this area, possibly driven by factors such as job opportunities, urban amenities, or the high cost of homeownership.
In 2023, the average home price in zip code 07306 experienced a slight decrease to $472,301, down 1.8% from 2022. However, 2024 has seen a rebound, with average home prices increasing to $490,664, a 3.9% rise from 2023. This recent uptick occurs despite the federal interest rate reaching 5.33% in 2024, the highest it has been since 2007. This resilience in home prices, even with higher interest rates, indicates strong underlying demand in the area's housing market.
Looking ahead, predictive models suggest that both average home prices and rent prices in zip code 07306 are likely to continue their upward trajectory over the next five years. Home prices are projected to increase by approximately 3-5% annually, potentially reaching around $570,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially reaching $1,500 per month by 2029. These projections assume continued economic stability and sustained demand for housing in the area.
In summary, zip code 07306 in Jersey City presents a real estate market characterized by rapidly appreciating home values, a consistently high renter population, and steadily increasing rent prices. Despite significant increases in property values, homeownership rates have remained relatively stable, suggesting that rising prices may be creating barriers to entry for potential homebuyers. The area's high population density and predominance of renters indicate a vibrant urban environment with strong demand for housing, both for purchase and rent.
