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Average Home Values and Ownership in Zip Code 08750: A Coastal New Jersey Real Estate Analysis
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
Sea Girt, located in zip code 08750 in New Jersey, is a coastal community known for its beautiful beaches and affluent neighborhoods. Over the past decade, this area has experienced significant fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The ownership percentage in Sea Girt has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 76%, which increased to a peak of 85% in 2019 before declining to 75% by 2022. This trend coincides with a substantial increase in average home prices. The average home price in the area rose from $876,720 in 2013 to $1,762,949 in 2022, representing a 101% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents, leading to a decrease in the ownership rate.
Federal interest rates have played a significant role in shaping homeownership trends in Sea Girt. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with generally high homeownership rates in the area, peaking at 85% in 2019. However, as interest rates began to rise sharply in 2022 to 1.68% and further to 5.02% in 2023, we observed a decline in homeownership rates to 75% in 2022.
The renter percentage in Sea Girt has shown an overall increase from 2013 to 2022, rising from 20% to 25%. This trend aligns with the gradual increase in average rent prices during the same period. The average rent price rose from $1,229 in 2013 to $1,746 in 2022, an increase of 42%. The population of Sea Girt fluctuated during this period, declining from 3,784 in 2013 to a low of 3,208 in 2019 before rebounding to 3,835 in 2022. The increase in both renter percentage and rent prices, despite population fluctuations, suggests a growing demand for rental properties in the area.
In 2023 and 2024, the average home prices in Sea Girt continued their upward trajectory. The average home price reached $1,829,315 in 2023 and further increased to $2,002,827 in 2024, representing a 13.6% rise over this two-year period. This surge in home prices occurred despite the federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to cool the housing market.
Looking ahead, predictive models suggest that average home prices in Sea Girt are likely to continue their upward trend over the next five years, albeit at a potentially slower rate due to high interest rates. Average rent prices are also expected to increase, driven by the growing demand for rental properties in the area. However, if interest rates remain high, we may see a stabilization or slight decrease in homeownership rates as potential buyers face challenges in securing affordable mortgages.
In summary, Sea Girt has experienced a notable shift in its housing market dynamics over the past decade. The area has seen a general decline in homeownership rates despite rapidly increasing home values. Simultaneously, there has been an increase in both the percentage of renters and average rent prices. These trends, coupled with the recent sharp rise in interest rates, paint a picture of a changing housing landscape in this coastal New Jersey community.
