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Rising Home Values and Ownership in Zip Code 07502: Paterson's Evolving Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 07502, located in Paterson, New Jersey, has experienced significant changes in homeownership rates and housing prices over the past decade. From 2013 to 2022, the area saw a notable increase in homeownership, with rates rising from 45% to 52%. This shift coincided with substantial growth in average home prices, particularly in recent years.
The gradual increase in homeownership in zip code 07502 from 45% in 2013 to 52% in 2022 occurred alongside a dramatic rise in average home prices. In 2013, the average home price was $183,045, which climbed steadily to reach $408,972 by 2022, representing a remarkable 123% increase over this period. The most significant price increases were observed between 2019 and 2022, with annual growth rates exceeding 13% each year.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. From 2013 to 2016, interest rates remained below 0.5%, corresponding with a slight increase in homeownership from 45% to 46%. As interest rates rose to 1.83% in 2018, homeownership remained stable at 46%. Interestingly, despite interest rates dropping to 0.08% in 2021, homeownership jumped to 50%, possibly influenced by pandemic-related factors and increased savings rates.
The renter percentage in zip code 07502 decreased from 55% in 2013 to 48% in 2022, inversely mirroring the homeownership trend. Average rent prices showed a more modest increase compared to home prices, rising from $1,293 in 2013 to $1,294 in 2022, a mere 0.08% increase over nine years. However, rent prices fluctuated during this period, peaking at $1,398 in 2021 before decreasing in 2022. The population in the zip code grew from 15,620 in 2013 to 17,775 in 2022, which may have contributed to the overall stability in rent prices despite the decrease in renter percentage.
In 2023, the average home price in zip code 07502 reached $435,037, continuing the upward trend seen in previous years. This represents a 6.4% increase from 2022. The federal interest rate in 2023 was 5.02%, significantly higher than in recent years. Moving into 2024, the average home price further increased to $461,383, a 6.1% rise from 2023. The federal interest rate for 2024 stands at 5.33%, indicating a continued tightening of monetary policy.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 07502 to continue rising, potentially reaching around $600,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, we expect a more moderate increase, potentially reaching approximately $1,500 by 2029, assuming the trend of slow but steady growth continues.
The most important discoveries for zip code 07502 include the significant increase in homeownership rates from 45% to 52% between 2013 and 2022, coupled with a substantial rise in average home prices of 123% during the same period. Despite fluctuations in federal interest rates, the area has seen a consistent trend towards increased homeownership. Average rent prices have remained relatively stable, with only a slight increase over the nine-year period. The continued rise in home prices through 2023 and 2024, despite higher interest rates, suggests a robust housing market in this area. Looking ahead, we anticipate further increases in both home prices and average rents, with home prices potentially showing more substantial growth compared to rental rates.
