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Average Home Values and Ownership Trends in Zip Code 08690: Hamilton Square's Shifting Housing Landscape
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
Hamilton Square, located in zip code 08690 in New Jersey, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, known for its suburban character and proximity to Trenton, has seen interesting trends in its real estate market.
The homeownership rate in Hamilton Square has shown a gradual decline from 2013 to 2022. In 2013, 89% of housing units were owner-occupied, but this figure decreased to 80% by 2022. Concurrently, average home prices in the area have seen significant growth. In 2013, the average home price was $258,040, and it steadily increased to $389,419 by 2022, representing a 51% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in Hamilton Square. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 86-87%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates started to decline, dropping to 85% by 2019. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) didn't immediately reverse the homeownership decline, possibly due to economic uncertainties during the pandemic.
As homeownership rates decreased, the percentage of renters in Hamilton Square increased from 10% in 2013 to 20% in 2022. This shift coincided with a rise in average rent prices. In 2013, the average rent was $1,452, which increased to $1,799 by 2022, a 24% increase. The population remained relatively stable during this period, fluctuating between 19,000 and 20,000 residents, suggesting that the increase in renters was not primarily driven by population growth but rather by shifts in housing preferences or affordability.
In 2023 and 2024, Hamilton Square experienced continued growth in average home prices. The average home price reached $420,096 in 2023 and further increased to $452,169 in 2024, representing a 16% increase from 2022 to 2024. This rapid appreciation occurred despite rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, based on the observed trends, we can predict that average home prices in Hamilton Square will continue to rise over the next five years, potentially reaching around $550,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $2,000 per month within the same timeframe. However, the rate of increase may moderate if interest rates remain high, potentially slowing down home price appreciation and rental market growth.
In summary, Hamilton Square has experienced a gradual shift towards more renters and fewer homeowners over the past decade, coinciding with substantial increases in both home prices and rents. The interplay between federal interest rates, housing affordability, and changing demographics has shaped these trends. As the area continues to evolve, the balance between homeownership and renting will likely remain a key factor in its housing market dynamics.
