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Average Home Values and Ownership in Zip Code 08106: A Decade of Change in Audubon, New Jersey
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
Audubon, located in zip code 08106 in New Jersey, is a small suburban community with a rich history and a dynamic real estate market. Over the past decade, this area has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Audubon has shown a slight downward trend over the years. In 2013, 69% of residents owned their homes, but by 2022, this figure had decreased to 65%. This decline coincides with a significant increase in average home prices. In 2013, the average home price in the area was $186,800, which steadily rose to $300,130 by 2022, representing a substantial 60.7% increase over nine years.
Federal interest rates have played a crucial role in shaping homeownership trends in Audubon. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable at around 68-69%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% by 2022, there was a corresponding decrease in homeownership rates to 65%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in Audubon has shown interesting trends as well. The percentage of renters increased from 31% in 2013 to 35% in 2022. This shift coincided with a rise in average rent prices, which increased from $1,057 in 2013 to $1,207 in 2022, a 14.2% increase. The population of the area remained relatively stable during this period, fluctuating between 9,400 and 9,700 residents, suggesting that the increase in renters was not due to significant population growth but rather a shift in housing preferences or affordability.
In 2023 and 2024, the real estate market in Audubon continued to evolve. The average home price in 2023 reached $324,213, and in 2024 it further increased to $347,700. This represents a substantial 15.8% increase from 2022 to 2024. Notably, federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade.
Looking ahead, based on the observed trends and current market conditions, we can project continued growth in both home prices and rent in Audubon over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $400,000 by 2029. Average rent prices are likely to follow a similar pattern, potentially increasing to approximately $1,400 per month in the same timeframe. However, these projections may be influenced by various factors, including economic conditions, local development, and broader housing market trends.
In summary, Audubon has experienced a gradual shift towards a higher proportion of renters, alongside substantial increases in both home prices and rent. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with rising interest rates corresponding to decreased homeownership. The recent sharp increase in home prices and interest rates suggests a dynamic and potentially challenging market for prospective homebuyers in the coming years.
