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Average Home Values and Ownership in Zip Code 08904: Highland Park's Shifting Housing Landscape
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Highland Park, located in New Jersey with zip code 08904, is a densely populated area covering just 1.86 square miles. This zip code has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics. The ownership percentage in Highland Park has shown a slight decline over recent years. In 2013, 43% of housing units were owner-occupied, and this figure remained stable until 2020. However, by 2022, the ownership rate had decreased to 40%. This trend coincides with a significant increase in average home prices. In 2013, the average home price was $329,642, which steadily rose to $467,630 by 2022, representing a 41.9% increase over nine years.
The relationship between federal interest rates and homeownership rates in Highland Park follows a generally inverse pattern. For instance, when interest rates were at historic lows between 2013 and 2015 (ranging from 0.11% to 0.13%), homeownership rates remained stable at 43%. However, as interest rates began to rise more significantly from 2016 onwards, reaching 1.68% in 2022, we see a corresponding decrease in homeownership to 40%.
Renter percentages in Highland Park have increased slightly, from 57% in 2013 to 60% in 2022. This shift correlates with rising average rent prices. In 2013, the average rent was $1,246, which increased to $1,458 by 2022, a 17% rise over nine years. The growing renter population, coupled with the area's high population density (7,762.9 people per square mile in 2022), likely contributed to the upward pressure on rent prices.
In 2023 and 2024, the housing market in Highland Park continued its upward trajectory. The average home price reached $486,827 in 2023 and further increased to $521,148 in 2024, representing a 11.4% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest a continuation of these trends over the next five years. Average home prices are projected to maintain their upward trajectory, potentially reaching around $600,000 by 2029. Rent prices are also expected to increase, albeit at a slower pace, potentially approaching $1,700 per month on average. These projections assume stable economic conditions and no major policy changes affecting the housing market.
In summary, Highland Park (08904) has experienced a gradual shift towards renting, with homeownership rates declining slightly as housing prices have significantly increased. The inverse relationship between interest rates and homeownership is evident, while the growing renter population has coincided with rising rent prices. The recent surge in home prices, despite higher interest rates, suggests a robust demand for housing in this densely populated area, a trend that is expected to continue in the near future.
