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Average Home Values and Ownership in Zip Code 07514: Paterson's Industrial Legacy Meets Modern Housing Trends
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 07514, located in Paterson, New Jersey, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a gradual shift towards increased homeownership, coupled with substantial growth in average home prices and fluctuating rental rates.
The ownership percentage in zip code 07514 has shown a notable upward trend, increasing from 28% in 2015 to 33% in 2022. This rise in homeownership coincides with a dramatic increase in average home prices. In 2015, the average home price was $190,351, which steadily climbed to $409,327 by 2022, representing a remarkable 115% increase over seven years. This trend suggests a growing demand for homeownership in the area, despite rising prices.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. As interest rates remained historically low between 2015 and 2021, ranging from 0.13% to 1.68%, the homeownership rate increased from 28% to 32%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, the homeownership rate continued to rise to 33% in 2022, even as interest rates increased to 1.68%, indicating other factors may also be influencing homeownership decisions in this area.
Renter percentages in zip code 07514 have correspondingly decreased from 72% in 2015 to 67% in 2022. Average rent prices have shown more volatility compared to home prices. In 2015, the average rent was $1,192, which decreased to $1,141 in 2016 before rising again to $1,260 in 2022. This represents a modest 5.7% increase in average rent over seven years, significantly lower than the growth in home prices. The fluctuation in rent prices and the decreasing renter percentage could be attributed to the shifting preference towards homeownership in the area.
Looking at the most recent data, the average home price in zip code 07514 reached $428,019 in 2023 and further increased to $445,096 in 2024. This continued upward trajectory in home prices occurs alongside a significant rise in interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the housing market in this area appears to remain robust, with home prices continuing to appreciate.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 07514 will continue to rise, potentially reaching around $550,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, the forecast suggests a more moderate increase, potentially reaching an average of approximately $1,400 per month by 2029, assuming the current trends continue.
In summary, zip code 07514 in Paterson, New Jersey, has experienced a significant shift towards homeownership, with the ownership rate increasing from 28% to 33% between 2015 and 2022. This trend has been accompanied by a substantial rise in average home prices, which more than doubled during the same period. Despite fluctuations in rent prices and recent increases in interest rates, the housing market in this area remains strong, with continued growth in home values expected in the coming years. These trends suggest a growing preference for homeownership in the area, potentially driven by long-term investment considerations and changing demographic factors.
