Loading Content...
Average Home Values and Ownership in Zip Code 08880: South Bound Brook's Shifting Housing Landscape
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
South Bound Brook, located in zip code 08880 in New Jersey, has experienced notable shifts in homeownership, average home prices, and average rent prices over the past decade. This small community, spanning just 0.76 square miles, has seen its population grow from 4,440 in 2010 to 4,808 in 2022, indicating a steady increase in residents.
The homeownership rate in South Bound Brook has shown a general decline from 2013 to 2022. In 2013, 67% of residents owned their homes, but by 2022, this figure had dropped to 58%. This downward trend coincides with a significant increase in average home prices. In 2013, the average home price was $229,384, rising steadily to reach $373,985 by 2022, representing a 63% increase over this period. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.40%), homeownership rates remained relatively stable, ranging from 67% to 63%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates dropped to 57% by 2019. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in South Bound Brook has grown correspondingly with the decline in homeownership. In 2013, 33% of residents were renters, increasing to 42% by 2022. This shift has been accompanied by fluctuations in average rent prices. The average rent rose from $1,432 in 2013 to $1,556 in 2019, an 8.7% increase. However, there was a slight dip to $1,508 in 2022, possibly due to economic factors or increased rental inventory. The overall trend shows a 5.3% increase in average rent from 2013 to 2022, which is notably less than the increase in average home prices over the same period.
In 2023 and 2024, the housing market in South Bound Brook continued to evolve. The average home price reached $395,850 in 2023 and further increased to $419,436 in 2024, representing a 12.2% rise from 2022 to 2024. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, potentially impacting homebuyers' purchasing power.
Looking ahead, predictive models suggest that average home prices in South Bound Brook may continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by the growing renter population and the overall rise in housing costs. However, the rate of increase for rent prices may be more moderate compared to home prices, as seen in the historical data.
In summary, South Bound Brook has experienced a shift towards a higher proportion of renters, coinciding with substantial increases in average home prices. The interplay between federal interest rates, homeownership rates, and housing costs has shaped the local real estate landscape. As the community continues to grow, these trends are likely to have significant implications for housing affordability and demographic composition in the coming years.
