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Rising Home Values and Ownership in Jersey City's 07304 Zip Code: A Decade of Urban Housing 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
Jersey City's zip code 07304 is a densely populated urban area in New Jersey, characterized by a dynamic real estate market with evolving ownership and rental trends. Over the past decade, this zip code has experienced significant changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic and demographic shifts.
The homeownership rate in zip code 07304 has remained relatively stable, with slight fluctuations over the years. In 2013, the homeownership rate was 28%, and by 2022, it stood at 28%. Despite this stability, average home prices have shown a substantial increase. In 2013, the average home price was $195,649, which rose dramatically to $475,887 by 2022, representing a 143% increase over nine years. This trend suggests that while the proportion of homeowners remained constant, the value of properties in the area appreciated significantly.
Federal interest rates have played a role in shaping homeownership trends in zip code 07304. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate slightly decreased from 28% to 25%. This counterintuitive trend might be attributed to other factors such as rapidly increasing home prices outpacing income growth, making it challenging for potential buyers to enter the market despite favorable borrowing conditions.
Renter occupancy in zip code 07304 has been the dominant housing tenure, with the percentage of renters ranging from 71% to 74% between 2013 and 2022. The average rent prices have shown a general upward trend, albeit with some fluctuations. In 2013, the average rent was $1,197, which increased to $1,306 by 2022, representing a 9.1% rise over nine years. The population growth from 39,464 in 2013 to 48,249 in 2022 likely contributed to the increased demand for rental properties, supporting the upward pressure on rent prices.
In 2023, the average home price in zip code 07304 experienced a slight decrease to $469,119, down 1.4% from the previous year. However, in 2024, the average home price rebounded to $486,411, marking a 3.7% increase from 2023. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may influence future homeownership trends and property values in the area.
Looking ahead, based on historical trends and current market conditions, we can anticipate continued growth in both average home prices and rent prices for zip code 07304 over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $560,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially reaching $1,500-$1,600 per month by 2029. These projections assume continued population growth and economic stability in the region.
In summary, zip code 07304 in Jersey City has demonstrated resilience in its housing market, with stable homeownership rates despite significant appreciation in property values. The area continues to be predominantly renter-occupied, with steadily increasing average rent prices. The recent uptick in federal interest rates and the rebound in average home prices in 2024 suggest a complex interplay of factors influencing the local real estate market, setting the stage for continued evolution in the coming years.
