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Dover Zip Code 07801: 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
Dover, located in zip code 07801 in New Jersey, has experienced notable shifts in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the dynamic real estate landscape of this area.
The homeownership rate in Dover has shown slight fluctuations over the years, with a general trend towards a decrease in owner-occupied housing. In 2013, the homeownership rate stood at 54%, which increased slightly to 55% from 2014 to 2019. However, from 2020 to 2022, there was a notable decrease to 52%. This shift coincides with significant changes in average home prices. The average home price in 2013 was $241,336, which steadily increased to $308,012 by 2019, representing a 27.6% increase over six years. This upward trend continued more dramatically in recent years, with the average home price reaching $401,894 in 2022, a 30.5% increase from 2019.
The relationship between federal interest rates and homeownership rates in Dover shows some correlation. From 2013 to 2019, when interest rates were relatively low (ranging from 0.09% to 2.16%), homeownership rates remained stable at 54-55%. However, as interest rates dropped to near-zero levels in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates paradoxically decreased to 52%. This suggests that other factors, such as rapidly increasing home prices, may have outweighed the potential benefits of low interest rates for potential homebuyers in this area.
The renter population in Dover has shown a corresponding increase as homeownership rates declined. The percentage of renter-occupied housing increased from 45% in 2019 to 48% in 2022. This trend aligns with changes in average rent prices. In 2013, the average rent was $1,503, which fluctuated slightly over the years, reaching $1,689 in 2019. A significant jump occurred in 2021, with average rent rising to $1,760, before slightly decreasing to $1,613 in 2022. The population of Dover has also grown during this period, from 27,273 in 2019 to 28,407 in 2022, potentially contributing to increased demand for rental properties.
Looking at the most recent data, the average home price in Dover continued its upward trajectory, reaching $427,578 in 2023 and $455,115 in 2024. This represents a substantial 13.2% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and could potentially slow down the rate of home price appreciation in the coming years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Dover will continue to rise, albeit at a potentially slower rate due to higher interest rates. Assuming a conservative annual growth rate of 3-5%, average home prices could reach approximately $525,000 to $580,000 by 2029. For average rent prices, considering historical trends and potential economic factors, we might expect a more moderate increase. Projecting an annual growth rate of 2-3%, average rents could reach around $1,800 to $1,900 by 2029.
In summary, Dover (07801) has experienced a gradual shift towards a higher proportion of renters, coinciding with substantial increases in both average home prices and rent prices. The rapid appreciation of home values, particularly in recent years, may have contributed to the decrease in homeownership rates despite periods of low interest rates. As the area continues to grow in population and housing prices rise, it will be crucial to monitor how these trends impact the balance between homeownership and renting in this New Jersey community.
