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Zip Code 07013: Rising Home Values and Shifting Ownership Trends in Clifton, New Jersey
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 07013, located in Clifton, New Jersey, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual shift in the balance between owners and renters, coupled with fluctuations in housing costs. The homeownership rate in zip code 07013 has shown a slight decline from 2013 to 2020, dropping from 73% to 67%. However, there was a slight uptick in 2021 and 2022, with ownership rates reaching 69% by the end of 2022. This trend correlates interestingly with the average home prices in the area. In 2013, the average home price was $320,193, and it steadily increased to $501,266 by 2022, representing a 56.5% increase over nine years. Despite the rising home prices, the recent uptick in homeownership suggests a resilient desire for property ownership in this area.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained very low, hovering around 0.1% to 0.4%. During this period, homeownership rates in zip code 07013 remained relatively stable at around 73%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), we observed a corresponding decline in homeownership rates, dropping to 68% by 2019. The sudden drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight rebound in homeownership rates to 69% by 2022, despite the continued rise in average home prices.
The renter population in zip code 07013 has shown an inverse relationship to homeownership rates. The percentage of renters increased from 27% in 2013 to a peak of 33% in 2020, before slightly declining to 31% in 2022. This trend coincided with a significant increase in average rent prices. In 2013, the average rent was $1,460, which rose to $1,691 by 2022, marking a 15.8% increase. The population growth in the area, from 26,798 in 2013 to 30,547 in 2022, likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
Looking at the most recent data, the average home price in zip code 07013 reached $530,445 in 2023 and further increased to $560,184 in 2024. This represents a substantial 11.8% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with the continued rise in home prices, may impact future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 07013 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 $1,900 by 2029, assuming the current growth rate continues.
In summary, zip code 07013 has experienced a complex interplay between homeownership rates, average home prices, and average rent prices. Despite rising home prices, there's been a recent uptick in homeownership, possibly driven by periods of low interest rates. The rental market has also seen growth, with increasing rent prices and a larger renter population. As we move forward, the area is likely to see continued growth in both home values and rent prices, though the rate of increase may be influenced by broader economic factors and interest rate changes.
