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Average Home Values and Ownership in Zip Code 08863: A Decade of Resilience and Growth
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
Fords, located in zip code 08863 in New Jersey, presents an intriguing landscape of homeownership and rental trends. This suburban area has experienced fluctuations in its ownership percentages and housing prices over the past decade, reflecting broader economic shifts and local market dynamics.
The ownership percentage in Fords has remained relatively stable, hovering around 70% throughout the observed period. In 2013, the homeownership rate stood at 71%, and by 2022, it had only slightly decreased to 69%. This stability in homeownership rates suggests a consistent preference for property ownership in the area. Concurrently, average home prices have shown a steady upward trajectory. In 2013, the average home price was $243,703, which increased to $403,555 by 2022, representing a substantial 65.6% growth over nine years.
Federal interest rates have played a significant role in shaping homeownership trends in Fords. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates remained steady at around 70-71%, likely supported by the favorable borrowing conditions. As interest rates began to rise more notably from 2017 (1.00%) to 2019 (2.16%), there was a slight dip in homeownership to 69% in 2019, possibly reflecting the increased cost of borrowing.
Renter percentages in Fords have mirrored the homeownership trends, fluctuating between 29% and 31% from 2013 to 2022. The average rent prices have shown a consistent upward trend during this period. In 2013, the average rent was $1,415, which increased to $1,906 by 2022, marking a 34.7% rise. This increase in rent prices has outpaced inflation and likely reflects the growing demand for rental properties in the area, possibly driven by those unable to enter the homeownership market due to rising home prices.
The years 2023 and 2024 have seen significant developments in the housing market of Fords. The average home price in 2023 reached $433,493, a 7.4% increase from 2022. In 2024, it further climbed to $468,805, representing an 8.1% year-over-year growth. Notably, these price increases have occurred against a backdrop of sharply rising interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates might typically be expected to cool the housing market, yet prices have continued to rise, suggesting strong underlying demand in the area.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue over the next five years. Based on historical data and current market conditions, average home prices in Fords could potentially reach around $575,000 by 2029, assuming a consistent growth rate similar to recent years. Average rent prices might increase to approximately $2,300 per month in the same timeframe, reflecting the ongoing demand for rental properties and the overall appreciation of real estate in the area.
In summary, Fords (08863) has demonstrated a resilient housing market characterized by stable homeownership rates and steadily increasing property values and rent prices. The area has weathered various economic conditions, including fluctuating interest rates, while maintaining its appeal to both homeowners and renters. The continued rise in both home prices and rents, even in the face of higher interest rates, suggests a robust local economy and sustained demand for housing in this New Jersey community.
