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Hackensack Riverfront: Rising Home Values and Ownership Dynamics in Jersey City's Waterfront Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hackensack Riverfront, located in Jersey City, New Jersey, has experienced significant changes in its real estate landscape over the past decade. This vibrant neighborhood has seen fluctuations in homeownership rates and notable increases in both average home prices and average rent prices, reflecting the dynamic nature of its housing market.
The homeownership rate in Hackensack Riverfront has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 75%, which decreased to 66% by 2022. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $292,908, which rose steadily to reach $452,201 by 2022, representing a 54.4% increase over this period. The 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 significant role in shaping homeownership trends in the neighborhood. From 2013 to 2016, interest rates remained low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, ranging from 71% to 77%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a general decline, dropping to 66% by 2022. This trend aligns with the well-established pattern that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in Hackensack Riverfront has generally increased as homeownership rates declined. The percentage of renters rose from 25% in 2013 to 34% in 2022. This shift coincided with an overall increase in average rent prices. In 2013, the average rent was $1,893, which increased to $1,950 by 2022, representing a 3% rise. However, it's worth noting that rent prices peaked at $2,074 in 2017 before experiencing some fluctuations. The increase in the renter population, coupled with rising rent prices, suggests a growing demand for rental properties in the area.
As of 2024, the average home price in Hackensack Riverfront has reached $487,485, continuing the upward trend observed in previous years. This represents a 5.2% increase from the 2023 average of $463,484. The federal interest rate for 2024 stands at 5.33%, slightly higher than the 2023 rate of 5.02%. These figures indicate a continued appreciation in property values despite relatively high interest rates, suggesting a robust demand for housing in the neighborhood.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in Hackensack Riverfront 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 $2,200 per month within the same timeframe. However, these projections are subject to various economic factors and market dynamics.
In summary, Hackensack Riverfront has experienced a shift towards a more rental-oriented market over the past decade, with declining homeownership rates and increasing average home and rent prices. The neighborhood has shown resilience in its property values, even in the face of rising interest rates. As the area continues to evolve, it will likely remain an attractive location for both investors and residents, with its real estate market reflecting the broader economic trends of Jersey City and the surrounding region.
