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Average Home Values and Ownership in Zip Code 08823: Franklin Park's Resilient Housing Market
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
Franklin Park, situated in zip code 08823 in New Jersey, has witnessed significant changes in its real estate market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, offering insights into the local housing market dynamics. The homeownership rate in Franklin Park has shown a generally declining trend from 2013 to 2016, followed by a period of stabilization and slight increase. In 2013, the homeownership rate stood at 71%, but it decreased to 63% by 2016. However, from 2017 onwards, there has been a gradual recovery, with the rate reaching 70% in 2022. Concurrently, average home prices have shown a consistent upward trajectory. In 2013, the average home price was $215,353, which increased to $326,451 by 2022, representing a substantial 51.6% growth over this period.
The relationship between federal interest rates and homeownership rates in Franklin Park shows an interesting pattern. As interest rates remained historically low between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates actually declined. However, as interest rates began to rise from 2017 onwards, homeownership rates stabilized and then increased. This suggests that other local factors may have had a more significant influence on homeownership decisions than interest rates alone in this particular market.
Renter percentages in Franklin Park have generally mirrored the inverse of homeownership rates, peaking at 37% in 2016 before declining to 30% by 2022. Average rent prices have shown a gradual upward trend, increasing from $1,749 in 2013 to $1,782 in 2022, a modest 1.9% increase over the period. The population of Franklin Park has fluctuated, reaching a peak of 9,698 in 2016 before declining to 8,903 in 2022, which may have influenced the demand for rental properties.
In 2023 and 2024, the real estate market in Franklin Park continued to evolve. The average home price rose to $353,238 in 2023 and further increased to $382,530 in 2024, representing a significant 17.2% increase from 2022 to 2024. This growth occurred despite a sharp rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local demand or other market factors offsetting the impact of higher borrowing costs.
Looking ahead, predictive models suggest that the upward trend in average home prices is likely to continue over the next five years, albeit potentially at a more moderate pace due to the current high interest rate environment. Average rent prices are also expected to increase, driven by inflation and the overall appreciation of property values in the area.
In summary, Franklin Park has experienced a resurgence in homeownership rates since 2017, coupled with substantial growth in average home prices. The rental market has seen more modest price increases, with renter percentages declining in recent years. The area's real estate market has shown resilience and growth, even in the face of rising interest rates, suggesting strong underlying demand and potentially limited housing supply.
