Loading Content...
Average Home Values and Ownership in Zip Code 07460: Highland Lakes's Lakeside Real Estate Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Highland Lakes, located in zip code 07460 in New Jersey, is a unique community characterized by high homeownership rates and fluctuating property values. This area has experienced significant changes in its housing market over the past decade, with notable shifts in both ownership patterns and average home prices. The homeownership rate in Highland Lakes has remained consistently high, ranging from 90% to 97% between 2013 and 2022. This strong preference for homeownership is reflected in the average home prices, which have shown a general upward trend. In 2010, the average home price was $249,574, and by 2022, it had increased to $352,277, representing a 41.2% growth over 12 years. Interestingly, the ownership percentage peaked at 97% in 2016 when the average home price was $231,859, suggesting that lower prices may have encouraged more residents to become homeowners.
Federal interest rates have played a significant role in shaping homeownership trends in Highland Lakes. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. This coincided with the highest homeownership rates in the area, peaking at 97% in 2016. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decline in homeownership, dropping to 93% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in Highland Lakes has been relatively small but growing. In 2013, only 5% of residents were renters, and this percentage decreased to a low of 2% in 2016. However, by 2022, the renter population had increased to 7%. The average rent prices have shown some volatility, peaking at $2,245 in 2013 before declining to $1,677 in 2018. By 2022, the average rent had risen again to $1,921. The increase in renter population coincides with rising home prices, suggesting that some residents may be priced out of homeownership.
In 2023, the average home price in Highland Lakes reached $376,095, with federal interest rates at 5.02%. The trend continued into 2024, with average home prices rising to $401,668 and interest rates further increasing to 5.33%. These figures represent a significant jump in both home values and borrowing costs compared to previous years.
Looking ahead, predictive models suggest that average home prices in Highland Lakes are likely to continue their upward trajectory over the next five years. Based on historical trends and current market conditions, we can expect average home prices to potentially reach around $450,000 to $500,000 by 2029. Average rent prices are also predicted to increase, possibly reaching $2,200 to $2,400 per month in the same timeframe.
In summary, Highland Lakes (07460) has maintained a strong homeownership culture despite fluctuations in the housing market. The area has seen significant appreciation in average home values, particularly in recent years, while also experiencing a gradual increase in its renter population. The interplay between federal interest rates, home prices, and ownership rates highlights the dynamic nature of the local real estate market. As we move forward, the community is likely to see continued growth in both home values and rental costs, potentially reshaping the housing landscape of this New Jersey CDP.
