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Rising Home Values and Shifting Ownership in Zip Code 08109: Merchantville'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
The zip code 08109, located in Merchantville, New Jersey, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has maintained a relatively stable balance between owner-occupied and renter-occupied properties, with some fluctuations in recent years.
From 2013 to 2022, the percentage of owner-occupied homes in zip code 08109 remained relatively stable, ranging from 69% to 73%. During this period, average home prices showed a significant upward trend. In 2013, the average home price was $155,316, which steadily increased to $265,488 by 2022, representing a substantial 71% increase over nine years. This trend suggests a strong correlation between rising property values and sustained homeownership rates in the area.
The relationship between federal interest rates and homeownership rates in zip code 08109 appears to follow established patterns. For instance, in 2013, when interest rates were at a low 0.11%, the homeownership rate was 70%. As interest rates gradually increased to 1.68% by 2022, the homeownership rate remained relatively stable at 69%, indicating a resilient housing market despite rising borrowing costs.
Renter percentages in zip code 08109 have shown minor fluctuations, ranging from 27% to 31% between 2013 and 2022. Average rent prices have also experienced variations during this period. In 2013, the average rent was $1,183, which increased to $1,300 by 2021, representing a 9.9% increase. However, there was a slight decrease to $1,143 in 2022. The population growth from 23,617 in 2013 to 24,686 in 2022 may have contributed to the overall upward pressure on rent prices, despite the recent dip.
As of 2024, the average home price in zip code 08109 has reached $304,619, continuing the upward trend observed in previous years. This represents a 14.7% increase from the 2022 average of $265,488. Concurrently, the federal interest rate has risen to 5.33% in 2024, up from 1.68% in 2022, which may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 08109 are likely to continue their upward trajectory over the next five years, potentially reaching around $350,000 by 2029. Average rent prices may also see moderate increases, potentially surpassing $1,400 per month within the same timeframe, assuming consistent economic conditions and population growth.
In summary, zip code 08109 has demonstrated a robust housing market with steadily increasing average home prices and relatively stable homeownership rates. The area has maintained a balanced mix of owners and renters, with both segments experiencing moderate growth in costs. The recent sharp increase in interest rates may influence future homeownership trends, potentially leading to a slight shift towards renting if sustained. However, the strong appreciation in home values suggests continued demand for property in this New Jersey borough.
