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Rising Home Values and Ownership in Essex Fells: Zip Code 07021's Resilient Housing Market
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
Essex Fells, located in zip code 07021 in New Jersey, is a small affluent community known for its high property values and strong homeownership rates. Over the past decade, this area has experienced significant fluctuations in average home prices and average rent costs, while maintaining a consistently high rate of owner-occupied housing.
The homeownership rate in Essex Fells has shown a steady increase from 89% in 2013 to 95% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $766,783, which grew to $1,135,670 by 2022, representing a 48% increase over nine years. The most dramatic jump occurred between 2020 and 2021, when average home prices surged from $885,613 to $1,032,959, a 16.6% increase in just one year.
Federal interest rates have played a role in homeownership trends in Essex Fells. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. This low-interest environment likely contributed to the steady increase in homeownership rates, as it made mortgage financing more accessible and affordable for potential buyers. The sharp increase in home prices in 2021 coincided with interest rates dropping to a mere 0.08%, which may have further incentivized home purchases despite rising prices.
While homeownership rates increased, the percentage of renters in Essex Fells decreased from 10% in 2013 to 5% in 2022. Interestingly, despite the declining renter population, average rent prices have shown a general upward trend. In 2013, the average rent was $1,940, which increased to $2,610 by 2022, representing a 34.5% rise over nine years. The highest average rent was recorded in 2021 at $3,035, coinciding with the lowest renter percentage of 5%. This inverse relationship between renter percentage and average rent prices suggests that even as fewer people rent in the area, those who do are paying premium prices for rental properties.
Looking at the most recent data, average home prices in Essex Fells continued to rise in 2023 and 2024, reaching $1,187,057 and $1,291,970 respectively. This represents a further 13.8% increase from 2022 to 2024. Simultaneously, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and home price growth.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Essex Fells will continue to rise, potentially reaching around $1.5 million by 2029. This projection is based on the consistent upward trend observed over the past decade and the area's desirability. Average rent prices are also expected to increase, potentially reaching $3,500 per month by 2029, assuming the trend of rising rents continues despite the small renter population.
In summary, Essex Fells has demonstrated a strong preference for homeownership, with rates reaching 95% by 2022. This trend has been accompanied by significant increases in both average home prices and average rent costs. The interplay between federal interest rates, homeownership rates, and property values highlights the dynamic nature of the local real estate market. As the community continues to evolve, it will be interesting to observe how these trends develop, particularly in light of the recent interest rate increases and the sustained growth in property values.
