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Average Home Values and Ownership in Zip Code 07416: A Decade of Change in Franklin, 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
Franklin, located in zip code 07416 in New Jersey, has experienced notable shifts in its housing market over the past decade. This area, known for its scenic beauty and proximity to the Appalachian Trail, has seen fluctuations in homeownership rates and housing prices that reflect broader economic trends.
The homeownership rate in Franklin has shown a general decline from 2013 to 2022. In 2013, 74% of residents owned their homes, but by 2022, this figure had dropped to 64%. This 10 percentage point decrease coincided with significant changes in average home prices. Average home prices in the area fell from $212,368 in 2010 to a low of $173,804 in 2012, before beginning a gradual recovery. By 2022, the average home price had rebounded significantly to $287,622, representing a 65% increase from the 2012 low.
The relationship between federal interest rates and homeownership rates in Franklin aligns with well-established trends. As interest rates remained low from 2010 to 2016, hovering between 0.09% and 0.40%, homeownership rates initially remained stable. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates experienced a more pronounced decline. This trend suggests that rising interest rates may have contributed to making homeownership less affordable for some residents.
Conversely, the percentage of renters in Franklin has increased from 26% in 2013 to 36% in 2022. This 10 percentage point increase in renters corresponds with fluctuations in average rent prices. Average rent prices peaked at $1,467 in 2013, then experienced a period of volatility before settling at $1,365 in 2022. Despite the overall increase in renters, the average rent price in 2022 was lower than its peak in 2013, possibly indicating a market adjustment to accommodate the growing renter population.
In 2023 and 2024, Franklin's housing market continued to evolve. The average home price rose to $308,399 in 2023 and further increased to $337,972 in 2024, representing a substantial 17.5% increase over two years. This rapid appreciation occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These high interest rates would typically be expected to cool the housing market, yet home prices in Franklin continued to climb, suggesting strong local demand or limited housing supply.
Looking ahead, predictive models suggest that average home prices in Franklin may continue their upward trajectory over the next five years, albeit at a potentially slower pace due to high interest rates. Average rent prices are also expected to increase moderately, driven by the growing renter population and overall housing market appreciation. However, if interest rates remain elevated, it could lead to a stabilization or even a slight decrease in home prices as affordability becomes a more significant factor for potential buyers.
In summary, Franklin has experienced a shift towards a more renter-oriented market over the past decade, with a notable decrease in homeownership rates. Despite this trend, average home prices have shown remarkable resilience and growth, particularly in recent years. The interplay between interest rates, housing prices, and rental market dynamics will likely continue to shape the local real estate landscape in the coming years, with affordability remaining a key factor in determining market trends.
