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Average Home Values and Ownership in Zip Code 07627: Demarest's Decade of Change
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
Demarest, located in zip code 07627 in New Jersey, has experienced significant changes in homeownership rates and property values over the past decade. This small suburban community, known for its excellent schools and proximity to New York City, reflects broader economic trends and local market dynamics in its real estate landscape.
The homeownership rate in Demarest has shown a gradual decline from 89% in 2013 to 85% in 2022. Concurrently, average home prices have risen substantially, from $782,438 in 2013 to $1,052,840 in 2022, representing a 34.6% increase over nine years. This appreciation in home values may have contributed to the slight decrease in homeownership, potentially pricing out some prospective buyers.
Federal interest rates have played a role in shaping homeownership trends in Demarest. From 2013 to 2016, interest rates remained below 0.5%, coinciding with relatively stable homeownership rates around 89-92%. As interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, a corresponding decline in homeownership rates to 85% was observed. This pattern aligns with the general economic principle that lower interest rates tend to encourage homeownership by making mortgages more affordable, while higher rates can have the opposite effect.
The renter population in Demarest has seen a modest increase, from 11% in 2013 to 15% in 2022. This trend has been accompanied by a steady rise in average rent prices, from $2,065 in 2013 to $2,874 in 2022, marking a 39.2% rise over the period. The growth in both renter percentage and rent prices suggests a growing demand for rental properties in the area, possibly driven by those unable to afford home purchases in an appreciating market.
Recent data shows that average home prices in Demarest continued to rise, reaching $1,117,748 in 2023 and $1,183,450 in 2024, representing a 12.4% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, standing at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and property values in the area.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Demarest will continue to appreciate, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $1,400,000 to $1,500,000. Average rent prices are also expected to increase, potentially reaching $3,300 to $3,500 per month by 2029, driven by ongoing demand for rental properties in this desirable suburb.
In summary, Demarest has experienced a gradual shift towards a slightly higher percentage of renters, coupled with substantial increases in both average home prices and rent costs. The interplay between rising property values, changing interest rates, and demographic shifts has shaped the local real estate market. As the area continues to attract residents with its amenities and location, these trends are likely to persist, potentially with some moderation due to economic factors and interest rate fluctuations.
