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Average Home Values and Ownership in Zip Code 07702: A Decade of Growth and Change in Shrewsbury, 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
Zip code 07702, located in Shrewsbury, New Jersey, has experienced notable shifts in homeownership, housing prices, and rental trends over the past decade. This area has maintained a high rate of homeownership while witnessing significant changes in both average home values and average rent prices.
The homeownership rate in zip code 07702 has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 85%, and by 2022, it had decreased slightly to 82%. During this period, average home prices in the area saw a substantial increase. In 2013, the average home price was $449,100, and by 2022, it had risen to $748,739, representing a 66.7% increase over nine years. This trend suggests that despite rising home values, the area has maintained a strong homeownership base.
Federal interest rates have played a role in homeownership trends in zip code 07702. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), homeownership rates remained high at 84-85%. As interest rates began to rise in 2017 (1%) and 2018 (1.83%), homeownership rates held steady at 84-85%. However, when interest rates dropped significantly in 2020 (0.38%) and 2021 (0.08%), there was a slight decrease in homeownership to 81% in 2021, possibly due to increased competition in the housing market.
Renter percentages in zip code 07702 have shown some variability, ranging from 15% to 19% between 2013 and 2022. Interestingly, average rent prices have seen dramatic increases during this period. In 2013, the average rent was $1,242, which increased to $2,260 by 2022, representing an 82% increase. This substantial rise in rent prices occurred despite relatively stable renter percentages, suggesting strong demand for rental properties in the area. The population growth from 4,613 in 2013 to 5,143 in 2022 may have contributed to the upward pressure on rent prices.
Looking at the most recent data, average home prices in zip code 07702 continued to rise in 2023 and 2024, reaching $790,106 and $848,390, respectively. This represents a 5.5% increase from 2022 to 2023 and a further 7.4% increase from 2023 to 2024. Concurrently, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 07702 will continue to rise, potentially reaching around $1,050,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, the forecast suggests a continued increase, potentially reaching approximately $2,800 by 2029, assuming the trend of rising rents persists.
In summary, zip code 07702 has demonstrated resilience in maintaining high homeownership rates despite significant increases in average home prices. The area has experienced substantial growth in both home values and average rent prices, with particularly dramatic rises in rent. The relationship between federal interest rates and homeownership rates has been complex, with recent increases in interest rates potentially impacting future housing market dynamics. As the population continues to grow and housing demand remains strong, both home prices and rents are expected to continue their upward trajectory in the coming years.
