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Zip Code 07012: Rising Home Values and Shifting Ownership Patterns in Clifton, NJ
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
Zip code 07012, located in Clifton, New Jersey, covers an area of 2.14 square miles. This densely populated urban area has experienced fluctuating homeownership rates and steadily increasing average home prices over the past decade, while average rent prices have shown moderate growth.
The homeownership rate in zip code 07012 has seen some variation from 2013 to 2022. In 2013, the ownership rate stood at 62%. This figure declined to 54% in 2018, before rebounding to 59% in 2022. Despite these fluctuations, average home prices have consistently increased. In 2013, the average home price was $304,705, which rose to $506,410 by 2022, representing a substantial 66% increase over this period. This trend suggests that while homeownership rates have fluctuated, the value of properties in the area has steadily appreciated.
Federal interest rates have played a role in homeownership trends in zip code 07012. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates decreased from 62% to 57%. This counterintuitive trend might be attributed to other local economic factors. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 55-57%. Interestingly, when interest rates dropped again in 2020 and 2021 (to 0.38% and 0.08% respectively), homeownership rates increased to 58% in 2021 and 59% in 2022, aligning more closely with the expected relationship between low interest rates and increased homeownership.
Renter percentages in zip code 07012 have shown an inverse relationship to homeownership rates, naturally. The renter population increased from 38% in 2013 to a peak of 46% in 2018, before declining to 41% in 2022. Average rent prices have generally increased over this period, albeit with some fluctuations. In 2013, the average rent was $1,662, which increased to $1,701 by 2022, representing a 2.3% increase. It's worth noting that despite the overall upward trend, there were years of decline, such as in 2015 when the average rent dropped to $1,610. The population of the zip code has also grown from 11,430 in 2013 to 13,077 in 2022, which may have contributed to the demand for rental properties and the overall increase in average rent prices.
Looking at the most recent data, average home prices in zip code 07012 continued their upward trajectory, reaching $537,021 in 2023 and $571,435 in 2024. This represents a significant increase of 12.8% from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and property values in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 07012 will continue to rise, potentially reaching around $650,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, we expect a more moderate increase, potentially reaching approximately $1,850 by 2029, assuming the trend of slight annual increases continues.
In summary, zip code 07012 has experienced fluctuating homeownership rates but consistently rising average home prices over the past decade. Renter percentages have mirrored homeownership trends, while average rent prices have shown moderate growth. The area has seen significant population growth, which may continue to influence housing dynamics. Recent sharp increases in both home prices and interest rates may reshape the local real estate landscape in the coming years.
