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Rising Home Values and Ownership in Zip Code 07735: Union Beach'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
Union Beach, located in zip code 07735 in New Jersey, has experienced significant changes in homeownership rates and housing prices over the past decade. This coastal community has shown resilience in its real estate market, with notable shifts in both ownership trends and property values.
The homeownership rate in Union Beach has seen a steady increase from 2013 to 2022. In 2013, 70% of residents were homeowners, and this figure rose to 74% by 2022. This upward trend in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $213,009, which nearly doubled to $400,966 by 2022. This correlation suggests that despite rising home values, more residents were able to transition into homeownership.
The relationship between federal interest rates and homeownership rates in Union Beach aligns with well-established trends. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), homeownership rates remained stable at 69%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates actually increased to 74%. This counter-intuitive trend may be attributed to other local economic factors or a desire to secure property before further price increases.
Renter percentages in Union Beach have shown a corresponding decline as homeownership increased. In 2013, 28% of residents were renters, and this figure dropped to 26% by 2022. Interestingly, average rent prices have fluctuated but generally increased during this period. In 2013, the average rent was $1,340, which rose to $1,389 by 2022. This increase in rent prices, coupled with the decrease in renter percentages, suggests that some renters may have transitioned to homeownership, possibly driven by the prospect of building equity in a rising market.
In 2023 and 2024, the real estate market in Union Beach continued its upward trajectory. The average home price in 2023 reached $421,206, further climbing to $448,074 in 2024. This represents a significant 11.7% increase from 2022 to 2024. Notably, federal interest rates also saw a sharp rise, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue in Union Beach over the next five years. Home prices are projected to increase at an average annual rate of 5-7%, potentially reaching around $590,000 by 2029. Rent prices are expected to follow a similar trajectory, with an estimated annual increase of 3-4%, potentially reaching approximately $1,620 by 2029.
In summary, Union Beach has demonstrated a robust real estate market characterized by increasing homeownership rates and rising property values. The community has shown resilience in the face of fluctuating interest rates, with a trend towards higher homeownership despite rising home prices. The rental market, while shrinking in terms of percentage, has seen steady increases in average rent prices. These trends point to a dynamic and evolving housing landscape in zip code 07735, with potential for continued growth in both the homeownership and rental sectors.
