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Rising Home Values and Shifting Ownership in Zip Code 07008: A Decade of Change in Carteret, 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 07008, located in Carteret, New Jersey, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual shift in the balance between owners and renters, coupled with substantial fluctuations in property values and rental costs. The homeownership rate in zip code 07008 has shown a slight decline over the years. In 2013, 59% of housing units were owner-occupied. This percentage decreased to 54% by 2022, indicating a shift towards renting in the area. Concurrently, average home prices have seen a remarkable increase. In 2013, the average home price was $218,659, which rose steadily to reach $428,184 in 2022, representing a 96% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. As interest rates remained historically low from 2013 to 2021 (ranging from 0.08% to 2.16%), homeownership rates initially declined from 59% to 55% between 2013 and 2015. However, they stabilized around 56-58% from 2016 to 2020, before dropping to 54% in 2022 as interest rates began to rise significantly.
The renter percentage in zip code 07008 has increased from 39% in 2013 to 46% in 2022, mirroring the decline in homeownership. This shift coincided with a steady rise in average rent prices. In 2013, the average rent was $1,341, which increased to $1,568 by 2022, a 17% increase. The population growth from 23,531 in 2013 to 25,176 in 2022 likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, the housing market in zip code 07008 continued to evolve. The average home price reached $454,369 in 2023 and further increased to $485,769 in 2024, representing a 13.4% growth over these two years. This occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue in zip code 07008, albeit at a potentially slower pace due to higher interest rates. Over the next five years, average home prices could potentially reach or exceed $550,000, while average rent prices might surpass $1,800 per month, assuming current economic conditions and local market factors remain relatively stable.
In summary, zip code 07008 has witnessed a gradual shift towards renting, with homeownership rates declining from 59% to 54% between 2013 and 2022. This period saw substantial growth in average home prices, nearly doubling from $218,659 to $428,184. Average rent prices also increased, though at a more moderate pace. The area's population growth and the interplay between low interest rates and rising property values have been key factors in shaping these trends. As we move forward, the housing market in this zip code is poised for continued growth, with both home prices and rent prices expected to rise further in the coming years.
