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Jersey City's 07307 Zip Code: Rising Home Values and Ownership Amid Market Dynamics
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 07307, located in Jersey City, New Jersey, has seen significant shifts in its housing market over the past decade. This densely populated urban area has experienced notable changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The percentage of owner-occupied homes in zip code 07307 has shown a gradual increase over the years. In 2013, the homeownership rate was 30%, and by 2022, it had risen to 34%. This upward trend in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in the area was $226,015, and by 2022, it had risen dramatically to $629,250, representing a 178% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. From 2013 to 2020, when interest rates were historically low, ranging from 0.11% to 0.38%, the homeownership rate remained relatively stable around 30%. However, as interest rates began to rise in 2021 and 2022, reaching 1.68% by the end of 2022, the homeownership rate actually increased to 34%. This suggests that other factors, such as local economic conditions or housing supply, may have had a stronger influence on homeownership trends in this area than interest rates alone.
Renter percentages in zip code 07307 have shown a slight decline, corresponding inversely to the increase in homeownership. In 2013, 70% of housing units were renter-occupied, decreasing to 66% by 2022. Despite this decline in the proportion of renters, average rent prices have steadily increased. The average rent rose from $1,302 in 2013 to $1,428 in 2022, an increase of 9.7% over nine years. This increase in rent prices occurred even as the area's population fluctuated, peaking at 44,361 in 2016 before declining to 40,579 in 2022.
Looking at the most recent data, the average home price in zip code 07307 continued to rise, reaching $638,160 in 2023 and $672,912 in 2024. This represents a further increase of 6.9% from 2022 to 2024. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 07307 will continue to rise, potentially reaching around $750,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, the model suggests a more moderate increase, potentially reaching approximately $1,600 by 2029, assuming the current rate of growth continues.
In summary, zip code 07307 has experienced a steady increase in homeownership rates and a significant rise in average home prices over the past decade. Despite a slight decrease in the proportion of renters, average rent prices have also increased, albeit at a slower rate than home prices. The area has shown resilience in its housing market, with homeownership rates increasing even in the face of rising interest rates. These trends suggest a strong demand for housing in this Jersey City neighborhood, with potential for continued growth in both the ownership and rental markets in the coming years.
