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Average Home Values and Ownership in Zip Code 08310: A Decade of Change in Buena, 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 08310, located in Buena, New Jersey, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen fluctuations in its population and housing market, reflecting broader economic trends and local dynamics. The homeownership rate in zip code 08310 has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate stood at 81%, but by 2022, it had decreased to 77%. This decline coincided with a substantial increase in average home prices. In 2013, the average home price was $163,278, which rose to $269,740 by 2022, representing a 65% increase over this period. The most significant jump occurred between 2020 and 2022, with average home prices surging from $206,118 to $269,740, a 31% increase in just two years.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. This low-interest environment likely contributed to the initial stability in homeownership rates. However, as interest rates began to rise more sharply from 2022 onwards, reaching 1.68% in 2022, we observed a corresponding decrease in homeownership rates from 72% in 2021 to 77% in 2022.
Renter percentages in zip code 08310 have generally increased from 19% in 2013 to 23% in 2022, inversely mirroring the homeownership trend. Average rent prices have also seen an upward trajectory, rising from $1,013 in 2013 to $1,145 in 2022, a 13% increase. Notably, there was a significant spike in average rent in 2021, reaching $1,490, before moderating in 2022. This trend in rental prices occurred alongside fluctuations in the local population, which decreased from 2,702 in 2013 to 2,154 in 2022, potentially influencing the rental market dynamics.
In 2023 and 2024, the housing market in zip code 08310 continued its upward trajectory. The average home price reached $282,971 in 2023 and further increased to $296,170 in 2024, representing a 4.7% year-over-year growth. This price appreciation occurred despite a significant rise in federal interest rates, which climbed to 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, predictive models suggest a continued upward trend in both average home prices and rent prices for the next five years in zip code 08310. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $350,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially exceeding $1,300 per month by 2029. These projections assume relatively stable economic conditions and a gradual normalization of interest rates.
In summary, zip code 08310 has experienced a gradual shift towards more renting and higher housing costs over the past decade. The area has seen substantial appreciation in home values, particularly in recent years, despite population declines. The interplay between federal interest rates, local population dynamics, and broader economic trends has significantly influenced these housing market shifts. As the area moves forward, it appears poised for continued growth in both home values and rental prices, reflecting ongoing changes in the local real estate landscape.
