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Bergen-Lafayette's Housing Market: Rising Home Values and Shifting Ownership Trends
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
Bergen-Lafayette, a diverse neighborhood in Jersey City, New Jersey, has experienced significant changes in homeownership and property values over the past decade. This area, known for its proximity to Liberty State Park, has seen a general trend of decreasing homeownership rates coupled with rising average home prices. From 2013 to 2022, the homeownership rate in Bergen-Lafayette declined slightly from 29% to 27%. During this same period, average home prices in the neighborhood saw substantial growth, more than doubling from $174,556 in 2013 to $502,784 in 2022. This inverse relationship suggests that rising property values may have made it more challenging for residents to purchase homes in the area.
Federal interest rates have influenced homeownership trends in Bergen-Lafayette. Interestingly, when interest rates were historically low between 2013 and 2016 (ranging from 0.11% to 0.40%), the homeownership rate decreased from 29% to 24%. This counterintuitive trend might be attributed to rapidly increasing home prices outpacing the benefits of low interest rates. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), the homeownership rate slightly increased to 27%, possibly due to buyers rushing to purchase before rates climbed higher.
The percentage of renters in Bergen-Lafayette has generally increased over time, rising from 71% in 2013 to 73% in 2022. Average rent prices have shown some volatility but with an overall upward trend. In 2013, the average rent was $1,226, which increased to $1,326 by 2022. The most significant jump occurred between 2020 and 2021, when average rent rose from $1,346 to $1,469, coinciding with a population increase from 22,769 to 25,742. This suggests that growing demand for housing in the area may have driven up rental prices.
Looking at the most recent data, the average home price in Bergen-Lafayette slightly decreased to $493,834 in 2023 but is projected to rise to $515,520 in 2024. This occurs against the backdrop of significantly higher interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher rates may impact affordability and could potentially slow down the rapid home price appreciation seen in previous years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Bergen-Lafayette will continue to rise, albeit at a more moderate pace than seen in the past decade. This projection is based on the neighborhood's consistent price appreciation and ongoing development. Average rent prices are also expected to increase over the next five years, driven by the area's growing population and the high percentage of renters in the neighborhood.
In summary, Bergen-Lafayette has experienced a decrease in homeownership rates alongside significant increases in average home prices over the past decade. The rental market has grown, with a higher percentage of renters and generally increasing average rent prices. Recent data shows a slight cooling in the housing market, potentially influenced by rising interest rates. However, the long-term outlook suggests continued growth in both average home prices and average rent prices, reflecting the neighborhood's increasing desirability and development.
