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Rising Home Values and Stable Ownership in Riverside, Paterson: A Decade of Growth Along the Passaic
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
Riverside, a neighborhood in Paterson, New Jersey, has experienced significant demographic and economic shifts over the past decade. This vibrant community has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Riverside has remained relatively stable, with slight fluctuations between 36% and 41% from 2013 to 2022. Concurrently, average home prices have shown a strong upward trend. In 2013, the average home price was $177,724, which steadily increased to $404,339 by 2022, representing a substantial 127.5% increase over this period. This trend suggests that while homeownership rates remained relatively constant, the value of owned properties significantly appreciated.
Federal interest rates have played a crucial role in shaping homeownership trends in Riverside. From 2013 to 2016, when interest rates were exceptionally low (0.11% to 0.4%), homeownership rates in the neighborhood remained relatively stable around 38-39%. As interest rates began to rise more substantially from 2017 (1%) to 2019 (2.16%), there was a slight decrease in homeownership to 36% in 2019. However, when interest rates dropped dramatically in 2020 (0.38%) and 2021 (0.08%), homeownership rebounded to 39% and 40% respectively, aligning with the general trend of lower interest rates encouraging homeownership.
Regarding rental trends, the percentage of renters in Riverside has fluctuated between 59% and 64% from 2013 to 2022. Average rent prices have shown some volatility but with an overall upward trend. In 2013, the average rent was $1,284, which decreased to $1,180 in 2016 before rising again to $1,271 in 2022. This represents a modest overall decrease of 1% from 2013 to 2022. The population of Riverside has also fluctuated during this period, from 23,924 in 2013 to 25,864 in 2022, which may have influenced rental demand and prices.
In 2023 and 2024, Riverside continued to see growth in average home prices. The average home price reached $419,711 in 2023 and further increased to $438,420 in 2024, representing a 4.5% year-over-year increase. This growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, based on historical trends and current market conditions, we can expect average home prices in Riverside to continue their upward trajectory over the next five years, albeit potentially at a slower pace due to higher interest rates. Average rent prices are likely to follow a similar trend, with moderate increases driven by housing demand and inflation. However, the exact pace of these increases will depend on various factors including economic conditions, local development, and demographic shifts.
In summary, Riverside has demonstrated resilience in its housing market, with stable homeownership rates despite significant appreciation in home values. The rental market has shown more volatility but maintains a majority share of the housing landscape. The neighborhood's ability to maintain population levels while experiencing substantial home price growth suggests a continued demand for housing in this area of Paterson, New Jersey.
