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Wildwood, NJ: Rising Home Values and Fluctuating Ownership in a Coastal Resort
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
Wildwood, New Jersey, is a vibrant coastal community located in Cape May County. Known for its expansive beaches and famous boardwalk, this seaside resort town has experienced fluctuating trends in homeownership and housing prices over the past decade. The city has seen a general decline in homeownership rates, while average home prices have shown a significant upward trajectory, particularly in recent years.
The homeownership rate in Wildwood has fluctuated between 44% and 50% from 2013 to 2022. In 2013, the homeownership rate was 47%, which increased to 50% in 2015. However, it then declined to 44% in 2017 before rising slightly to 47% in 2022. During this period, average home prices in Wildwood have shown a consistent upward trend. In 2013, the average home price was $270,875, which increased to $281,160 in 2015. By 2022, the average home price had risen dramatically to $512,844, representing an 89% increase over the 2013 figure.
The relationship between federal interest rates and homeownership rates in Wildwood shows some correlation. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable around 45-50%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed more volatility, fluctuating between 44% and 48%.
Renter percentages in Wildwood have generally mirrored the homeownership trends, ranging from 50% to 56% between 2013 and 2022. The average rent prices have shown an overall increasing trend, albeit with some fluctuations. In 2013, the average rent was $1,105, which decreased to $994 in 2014. However, it then began to rise again, reaching $1,228 in 2021 before slightly decreasing to $1,103 in 2022. This represents a modest overall increase of about 8% from 2013 to 2022.
In 2023, the average home price in Wildwood reached $537,791, continuing the upward trend observed in previous years. This increase occurred despite a significant rise in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has further increased to $560,490, while the federal interest rate has risen slightly to 5.33%. These figures indicate a continued strong housing market in Wildwood, even in the face of higher borrowing costs.
Looking ahead, based on the observed trends and current market conditions, it is projected that average home prices in Wildwood will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the overall appreciation of property values and potential shifts towards renting if homeownership becomes less affordable due to rising prices and interest rates.
In summary, Wildwood has experienced a notable increase in average home prices over the past decade, with a particularly sharp rise in recent years. While homeownership rates have fluctuated, they have generally trended downward. Rent prices have shown a more modest increase. The city's desirable coastal location and limited land area are likely contributing factors to the strong housing market, despite economic challenges such as rising interest rates. These trends suggest that Wildwood remains an attractive real estate market, with potential for continued growth in both home values and rental rates in the coming years.
