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Hillcrest, NJ: Soaring Home Values and Ownership Rates Amid Declining Rent Prices
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
Hillcrest, a vibrant neighborhood in Paterson, New Jersey, has experienced significant changes in its real estate landscape over the past decade. This area has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Hillcrest has shown a remarkable upward trend, particularly in recent years. In 2013, 68% of residents owned their homes. This figure remained relatively stable until 2019 when it began to climb steadily, reaching an impressive 79% by 2022. This substantial increase in homeownership coincided with a significant rise in average home prices. In 2013, the average home price in Hillcrest was $195,509. By 2022, this figure had more than doubled to $415,697, representing a 112.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in Hillcrest presents an interesting dynamic. From 2013 to 2020, interest rates remained historically low, hovering between 0.08% and 0.38%. During this period, homeownership rates in Hillcrest increased modestly from 68% to 69%. However, the most significant jump in homeownership occurred between 2020 and 2022, rising from 69% to 79%, despite interest rates climbing from 0.38% to 1.68%. This suggests that other factors, such as local economic conditions or housing market dynamics, may have played a more significant role in driving homeownership in Hillcrest than interest rates alone.
Conversely, the percentage of renters in Hillcrest has decreased over time, dropping from 32% in 2013 to 21% in 2022. Despite this decline in the renter population, average rent prices have shown an upward trend. In 2013, the average rent was $1,324 per month. By 2022, it had increased to $1,686, representing a 27.3% rise over nine years. This increase in average rent prices, despite a decreasing renter population, could indicate a growing demand for high-quality rental properties in the area or reflect broader economic factors affecting the housing market.
In 2023 and 2024, the real estate market in Hillcrest continued to evolve. The average home price in 2023 reached $441,337, a 6.2% increase from 2022. In 2024, it further rose to $467,524, marking a 5.9% increase from the previous year. These increases occurred despite significantly higher interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. This suggests a robust demand for housing in Hillcrest, potentially driven by factors such as local economic growth or the neighborhood's desirability.
Looking ahead, predictive models suggest that the upward trend in both average home prices and average rent prices is likely to continue over the next five years. Average home prices are projected to increase by approximately 5-7% annually, potentially reaching around $620,000 by 2029. Average rent prices are expected to rise at a more moderate rate of 3-4% per year, potentially reaching about $1,950 per month by 2029.
In summary, Hillcrest has experienced a significant increase in homeownership rates and average home prices over the past decade, with a particularly strong surge in recent years. Despite rising interest rates, the demand for homeownership in the area remains robust. While the renter population has decreased, average rent prices have continued to climb, albeit at a slower pace than home prices. These trends suggest that Hillcrest is becoming an increasingly desirable neighborhood for homeowners, with a strong and potentially appreciating real estate market in the coming years.
