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Home Values and Ownership in Zip Code 07921: Bedminster's Real Estate Resilience
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
Zip code 07921, located in Bedminster, New Jersey, is a suburban area known for its mix of residential and commercial properties. Over the past decade, this area has experienced fluctuations in homeownership rates and significant changes in average home and rent prices. The overall trend shows a slight decrease in homeownership, coupled with a steady increase in both average home prices and average rent prices.
Analyzing the relationship between homeownership percentage and average home prices reveals interesting patterns. In 2013, the homeownership rate was 82%, with an average home price of $310,547. By 2022, the homeownership rate had decreased to 79%, while the average home price increased to $412,186. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents. The most significant drop in homeownership occurred between 2015 and 2016, falling from 80% to 74%, coinciding with a period of steadily increasing home prices.
Federal interest rates have played a role in homeownership trends in zip code 07921. When interest rates were at historic lows between 2013 and 2015 (ranging from 0.11% to 0.13%), homeownership rates remained relatively stable at around 80-82%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates experienced some volatility, ultimately settling at 79% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages and average rent prices in zip code 07921 have shown a generally positive correlation. In 2013, the renter percentage was 18%, with an average rent price of $1,900. By 2022, the renter percentage had increased to 21%, while the average rent price rose to $2,101. The peak in renter occupancy occurred in 2016 at 26%, coinciding with a significant jump in average rent to $2,081. It's worth noting that despite some fluctuations in the renter population, average rent prices have consistently trended upward, suggesting a strong demand for rental properties in the area.
Looking at the most recent data, the average home price in zip code 07921 reached $434,167 in 2023 and further increased to $466,243 in 2024. This represents a substantial 13.1% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rising home prices, may pose challenges for potential homebuyers in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 07921 will continue to rise, albeit at a potentially slower rate due to the current high interest rate environment. We project that by 2029, average home prices could reach approximately $550,000 to $600,000. For average rent prices, the upward trend is likely to persist, with projections suggesting they could increase to around $2,500 to $2,700 per month by 2029.
In summary, zip code 07921 has experienced a gradual shift towards more renters over the past decade, likely influenced by rising home prices and fluctuating interest rates. Despite this trend, homeownership rates remain relatively high at 79%. The area has seen consistent growth in both average home prices and average rent prices, indicating strong demand for housing in this suburban New Jersey location. The recent sharp increases in both home prices and interest rates suggest that the local real estate market may be entering a new phase, potentially affecting future homeownership trends and housing affordability in the area.
