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North Caldwell, NJ: Consistent Homeownership Amidst Rising Home Values
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
North Caldwell, located in New Jersey, is a small suburban community known for its high quality of life and excellent schools. The city has consistently maintained a high rate of homeownership, with average home prices showing a general upward trend over the past decade. Meanwhile, average rent prices have also increased, albeit with some fluctuations.
Homeownership in North Caldwell has remained remarkably stable, with rates consistently above 95% from 2013 to 2022. The average home prices have shown a significant upward trend, particularly in recent years. In 2010, the average home price was $736,672, which dipped to $687,366 in 2012 before steadily climbing. By 2020, the average home price had reached $777,017, and it surged to $957,862 in 2022, representing a 30% increase in just two years.
The relationship between federal interest rates and homeownership rates in North Caldwell appears to be somewhat muted, likely due to the already high rate of homeownership. Despite fluctuations in federal interest rates, homeownership remained consistently high. For instance, when interest rates dropped from 1.83% in 2018 to 0.38% in 2020, the homeownership rate stayed at 99%. This suggests that factors other than interest rates, such as the desirability of the area and local economic conditions, may have a stronger influence on homeownership in this community.
Renter percentages in North Caldwell have been extremely low, with data showing 0% from 2015 to 2018, and only increasing slightly to 1% from 2019 to 2021. In 2022, there was a slight uptick to 3% renters. Despite the low renter population, average rent prices have shown a steady increase. In 2013, the average rent was $1,661, which rose to $1,875 by 2022, representing a 12.9% increase over nine years. This increase in rent prices, despite the low renter population, could be attributed to the overall high property values in the area and limited rental inventory.
In 2023, the average home price in North Caldwell reached $1,002,529, marking the first time it surpassed the million-dollar mark. This trend continued into 2024, with average home prices climbing further to $1,061,794. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices continued to appreciate, suggesting strong demand and limited supply in the local housing market.
Looking ahead, based on the observed trends, it's projected that average home prices in North Caldwell will continue to rise over the next five years, potentially reaching around $1.3 million by 2029. Average rent prices are also expected to increase, possibly surpassing $2,200 per month within the same timeframe. However, these projections assume continued economic stability and sustained demand for housing in the area.
In summary, North Caldwell has maintained exceptionally high homeownership rates, with average home prices showing substantial growth, particularly in recent years. The rental market, while small, has seen steady increases in average rent prices. The community's resilience to interest rate fluctuations and consistent property value appreciation suggest a strong, stable housing market that is likely to continue its upward trajectory in the coming years.
