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Average Home Values and Ownership in Zip Code 08071: Pitman's Small-Town Market Dynamics
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 08071, located in Pitman, New Jersey, is a suburban area known for its small-town charm and strong community spirit. Over the past decade, this zip code has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 08071 has shown a slight decline from 2013 to 2022, with some fluctuations in between. In 2013, the homeownership rate stood at 75%, gradually decreasing to 72% by 2022. During this same period, average home prices in the area have seen significant growth. In 2013, the average home price was $171,963, which steadily increased to $287,443 by 2022, representing a substantial 67% increase over nine years.
The relationship between federal interest rates and homeownership rates in zip code 08071 follows a general trend observed nationwide. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 0.14%, homeownership rates remained relatively stable, hovering around 74-77%. However, as interest rates began to rise in 2022 to 1.68%, there was a slight decrease in homeownership to 72%, suggesting that higher borrowing costs may have impacted some potential buyers' ability to enter the market.
Renter percentages in zip code 08071 have shown a moderate increase from 24% in 2013 to 28% in 2022. This trend coincides with changes in average rent prices. In 2013, the average rent was $1,372, which increased to $1,498 by 2022, representing a 9.2% increase over nine years. The population in the zip code has remained relatively stable during this period, fluctuating between 9,400 and 9,900 residents, which suggests that the increase in renter percentages may be due to factors such as changing demographics or housing affordability concerns.
In 2023 and 2024, the housing market in zip code 08071 continued to experience significant growth. The average home price reached $311,650 in 2023 and further increased to $331,508 in 2024, representing a 15.3% increase over two years. This surge in home prices occurred despite a sharp rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to increased housing costs and potentially affected affordability for some buyers.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue in zip code 08071 over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $385,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially reaching $1,700-$1,800 per month by 2029.
In summary, zip code 08071 has experienced a gradual shift towards more renters and higher housing costs over the past decade. The area has seen substantial growth in average home prices, outpacing the increase in average rent prices. Despite rising interest rates, the housing market has remained robust, with continued price appreciation. These trends suggest a dynamic and evolving housing market in Pitman, reflecting broader economic factors and local demand for housing.
