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Cliffside Park, NJ: Rising Home Values and Shifting Ownership Patterns in a Densely Populated Borough
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
Cliffside Park, a vibrant borough in New Jersey, is known for its stunning views of the Manhattan skyline and its diverse community. Located in Bergen County, this densely populated area has experienced significant changes in its housing market over the past decade. The city has seen a general trend of decreasing homeownership rates, rising average home prices, and increasing average rent prices.
The homeownership rate in Cliffside Park has shown a gradual decline from 2013 to 2022. In 2013, 49% of residents owned their homes, but by 2019, this figure had dropped to 45%. However, there was a slight recovery in recent years, with homeownership reaching 48% in 2022. This trend coincides with a steady increase in average home prices. In 2013, the average home price was $393,941, and it rose consistently to reach $560,060 in 2022, representing a substantial 42.2% increase over nine years.
The relationship between federal interest rates and homeownership rates in Cliffside Park follows some expected patterns. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates remained relatively stable around 48-49%. As interest rates began to rise more significantly from 2016 onwards, reaching 2.16% in 2019, homeownership rates declined to their lowest point of 45%. However, the relationship is not always straightforward, as seen in the slight recovery of homeownership rates to 48% in 2022 despite rising interest rates.
The renter population in Cliffside Park has generally increased over the years, with the percentage of renters rising from 51% in 2013 to 55% in 2019, before slightly decreasing to 52% in 2022. This trend has been accompanied by a steady increase in average rent prices. In 2013, the average rent was $1,391, and it rose to $1,762 by 2022, marking a 26.7% increase. The growing renter population and rising rent prices could be attributed to the borough's increasing population, which grew from 24,152 in 2013 to 25,546 in 2022.
In 2023, the average home price in Cliffside Park reached $572,935, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $602,668, while interest rates have slightly risen to 5.33%. These figures indicate a continuing upward trend in both home prices and interest rates, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that both average home prices and rent prices in Cliffside Park are likely to continue their upward trajectory over the next five years. Based on historical trends, average home prices could potentially reach around $700,000 by 2029, while average rent prices might approach $2,000 per month. However, these projections may be influenced by various factors, including economic conditions, local development, and broader housing market trends.
In summary, Cliffside Park has experienced a notable shift in its housing landscape over the past decade. The borough has seen a general trend of decreasing homeownership rates, although with a recent slight recovery. Average home prices have risen significantly, as have average rent prices. The renter population has generally increased, reflecting changing demographics and housing preferences. With continuing increases in both home prices and interest rates, the housing market in Cliffside Park remains dynamic and potentially challenging for both buyers and renters.
