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Rising Home Values and Changing Ownership Patterns in Zip Code 07005: A Decade of Suburban Housing Trends in Boonton, New Jersey
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 07005, located in Boonton, New Jersey, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, spanning 20.2 square miles, has seen fluctuations in its population and housing market dynamics, reflecting broader economic trends and local factors.
The homeownership rate in zip code 07005 has shown a gradual decline from 2013 to 2022. In 2013, 74% of residents were homeowners, but by 2022, this figure had decreased to 69%. Interestingly, this decline in homeownership coincided with a significant increase in average home prices. The average home price in the area rose from $406,091 in 2013 to $569,614 in 2022, representing a 40.3% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 07005. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 74-76%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observe a corresponding decline in homeownership rates, dropping to 72% by 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates declined, the percentage of renters in zip code 07005 naturally increased. The renter population grew from 26% in 2013 to 31% in 2022. This shift coincided with a rise in average rent prices, which increased from $1,396 in 2013 to $1,528 in 2022, a 9.5% increase. The population of the area remained relatively stable during this period, fluctuating between 16,310 and 16,995 residents, suggesting that the increase in renters was primarily due to shifts from homeownership to renting rather than significant population changes.
In 2023 and 2024, the housing market in zip code 07005 continued to evolve. The average home price reached $598,051 in 2023 and further increased to $634,183 in 2024, representing a 11.3% rise over two years. This occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These high interest rates, typically associated with cooling housing markets, did not appear to significantly dampen home price growth in this area.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both home prices and rent in zip code 07005 over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $750,000 by 2029. Average rent prices are likely to follow a similar pattern, potentially increasing to approximately $1,800 per month. However, the rate of increase may moderate compared to recent years, especially if interest rates remain high.
In summary, zip code 07005 has experienced a notable shift towards renting, with homeownership rates declining despite rising property values. The area has shown resilience in its housing market, with home prices continuing to climb even in the face of higher interest rates. These trends suggest a dynamic and potentially competitive housing market in Boonton, New Jersey, with implications for both current and future residents.
