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Average Home Values and Ownership in Zip Code 07734: A Decade of Growth in Keansburg's Coastal Community
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 07734, located in Keansburg, New Jersey, offers a unique snapshot of homeownership and rental trends in a densely populated area. Over the past decade, this community has experienced fluctuations in ownership percentages and significant changes in average home and rent prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 07734 has remained relatively stable, hovering around 60% from 2013 to 2022. However, this stability masks an interesting interplay with average home prices. In 2013, the average home price was $162,375, and by 2022, it had doubled to $328,667. Despite this substantial increase in home values, the ownership percentage didn't significantly change, suggesting a resilient homeowner base or potential barriers to entry for new buyers.
Federal interest rates have played a crucial role in shaping homeownership trends. In 2013, when interest rates were at a low 0.11%, the homeownership rate was 60%. As interest rates remained low through 2020 (0.38%), homeownership slightly decreased to 59%. This counterintuitive trend might be attributed to local economic factors or housing supply issues outweighing the benefits of low interest rates. However, by 2022, with interest rates rising to 1.68%, homeownership returned to 60%, possibly indicating a rush to purchase before rates increased further.
Renter percentages in zip code 07734 have mirrored homeownership trends, remaining steady at around 40% from 2013 to 2022. Interestingly, average rent prices have shown more volatility than ownership rates. In 2013, the average rent was $1,372, peaking at $1,462 in 2021 before slightly decreasing to $1,365 in 2022. This trend suggests that while the proportion of renters remained constant, the rental market experienced fluctuations, possibly due to changes in housing supply, local economic conditions, or shifts in renter demographics.
Looking at the most recent data, average home prices in zip code 07734 continued to rise, reaching $345,637 in 2023 and $367,505 in 2024. This represents a 12% increase from 2022 to 2024, indicating a strong housing market despite higher interest rates. The federal interest rate increased significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homebuying activity and affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 07734 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $450,000 to $500,000, assuming a moderate annual growth rate of 4-6%. Average rent prices are expected to follow a similar upward trajectory, potentially reaching $1,600 to $1,800 per month by 2029, reflecting a 3-5% annual increase.
In summary, zip code 07734 presents a picture of a housing market with stable ownership and rental percentages despite significant increases in property values. The resilience of homeownership rates in the face of rising prices suggests a strong local economy or a highly desirable location. The recent sharp increases in interest rates, coupled with continued home price appreciation, may lead to shifts in the market dynamics in the coming years, potentially affecting affordability and the balance between owners and renters in this New Jersey community.
