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Zip Code 07009: Great Notch's Rising Home Values and Ownership Rates
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
Great Notch, located in zip code 07009 in New Jersey, has experienced notable shifts in homeownership rates and property values over the past decade. This analysis explores the trends in ownership percentages, average home prices, and average rent prices, providing insights into the local real estate market dynamics. The homeownership rate in Great Notch has shown a steady increase from 2013 to 2022. In 2013, the percentage of owner-occupied homes stood at 79%, and by 2022, it had risen to 84%. This 5% increase in homeownership indicates a growing preference for owning rather than renting in the area. Concurrently, average home prices have also seen a significant upward trend. In 2013, the average home price was $445,856, and by 2022, it had climbed to $640,131, representing a substantial 43.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in Great Notch aligns with well-established trends. From 2013 to 2016, when interest rates remained extremely low (ranging from 0.09% to 0.4%), homeownership rates held steady at around 79%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates also increased, reaching 80% by 2019. This trend continued into 2020 and beyond, with homeownership reaching 84% by 2022, despite fluctuations in interest rates.
Conversely, the percentage of renters in Great Notch has declined from 20% in 2013 to 16% in 2022. Despite this decrease in the renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $1,496, and it increased to $1,646 by 2022, representing a 10% rise. However, it's worth noting that rent prices peaked at $1,881 in 2018 before moderating in subsequent years.
Looking at the most recent data, the average home price in Great Notch continued its upward trajectory, reaching $656,457 in 2023 and further increasing to $692,346 in 2024. This represents a 2.5% increase from 2022 to 2023 and a 5.5% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, standing at 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Great Notch will continue to rise, potentially reaching around $800,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the recent acceleration in price growth. For average rent prices, we expect a more moderate increase, potentially reaching approximately $1,800 by 2029, assuming the current trends in population growth and housing demand continue.
In summary, Great Notch has experienced a significant increase in homeownership rates and average home prices over the past decade. The area has seen a shift towards homeownership, with a corresponding decrease in the renter population. Despite this, average rent prices have generally trended upwards, albeit with some fluctuations. The recent sharp increases in federal interest rates may influence future homeownership trends, but the strong local housing market suggests continued growth in property values in the coming years.
