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Toms River: Rising Home Values and Ownership Rates in a Coastal New Jersey Community
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
Toms River, located in New Jersey, is a vibrant coastal community known for its beautiful beaches and rich maritime history. Over the past decade, this city has experienced interesting shifts in homeownership rates, average home prices, and average rent prices. The overall trend shows a slight increase in homeownership, coupled with substantial growth in average home prices and fluctuating average rent prices.
The homeownership rate in Toms River has shown a moderate upward trend, rising from 78% in 2013 to 84% in 2022. This increase coincides with a significant rise in average home prices, which grew from $229,723 in 2010 to $376,382 in 2022, representing a 63.8% increase over 12 years. The relationship between homeownership rates and average home prices suggests that despite rising costs, more residents are choosing to buy homes. For instance, in 2014, when the homeownership rate peaked at 82%, the average home price was $224,852. By 2022, with homeownership at 84%, the average home price had increased to $376,382.
Federal interest rates have played a crucial role in shaping homeownership trends in Toms River. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the relatively high homeownership rates during this time. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates remained relatively stable, fluctuating between 79% and 80%. Interestingly, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight increase in homeownership to 80% in 2021 and 84% in 2022, suggesting that lower interest rates may have encouraged more residents to purchase homes.
The renter population in Toms River has fluctuated over the years, with the percentage of renters decreasing from 22% in 2013 to 16% in 2022. Average rent prices have shown volatility, rising from $1,274 in 2013 to a peak of $1,577 in 2014, before settling at $1,428 in 2022. The city's population growth, from 89,957 in 2013 to 95,021 in 2022, may have influenced these rent price fluctuations. For example, in 2017, when the renter percentage was 21% and the population was 89,861, the average rent was $1,450. By 2022, with a lower renter percentage of 16% but a higher population of 95,021, the average rent had decreased slightly to $1,428.
In 2023, the average home price in Toms River reached $395,469, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $415,290, while interest rates have risen to 5.33%. These figures indicate a continuing upward trend in home prices despite higher interest rates, suggesting strong demand in the local housing market.
Looking ahead, predictive models forecast that average home prices in Toms River will continue to rise over the next five years, potentially reaching around $500,000 by 2029. Average rent prices are expected to follow a more moderate upward trajectory, potentially increasing to approximately $1,600-$1,700 per month in the same timeframe.
In summary, Toms River has experienced a notable increase in homeownership rates and average home prices over the past decade, despite fluctuations in interest rates. The rental market has seen more variability, with decreasing renter percentages and fluctuating average rent prices. The city's growing population and the recent trend of rising home prices, even in the face of higher interest rates, suggest a robust and competitive housing market in Toms River for the foreseeable future.
