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Zip Code 07022: Rising Home Values and Shifting Ownership Patterns in Fairview, 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
Fairview, located in zip code 07022 in New Jersey, is a densely populated area known for its diverse community and proximity to New York City. Over the past decade, this zip code has experienced significant shifts in homeownership rates and housing costs, reflecting broader economic trends and local market dynamics.
The homeownership rate in Fairview has shown a declining trend since 2013. In 2013, 37% of residents owned their homes, but by 2022, this figure had decreased to 33%. This decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $288,191, which rose dramatically to $543,047 by 2022, representing an 88.4% increase over nine years. This inverse relationship between homeownership rates and home prices suggests that rising property values may have made homeownership less attainable for many residents.
Federal interest rates have played a role in shaping homeownership trends in Fairview. From 2013 to 2016, interest rates remained below 0.5%, which typically encourages homeownership. However, the homeownership rate still declined from 37% to 33% during this period, possibly due to rapidly increasing home prices outpacing the benefits of low interest rates. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate continued to fluctuate between 32% and 34%, showing the complex interplay between interest rates, home prices, and homeownership.
The renter population in Fairview has grown as homeownership has declined. In 2013, 63% of residents were renters, increasing to 67% by 2022. This trend aligns with the rise in average rent prices, which increased from $1,293 in 2013 to $1,435 in 2022, a 11% increase. The growing renter population, coupled with rising rent prices, suggests a strong demand for rental properties in the area. This demand may be driven by the increasing population, which grew from 14,095 in 2013 to 15,064 in 2022, a 6.9% increase.
In 2023 and 2024, the housing market in Fairview continued its upward trajectory. The average home price reached $565,127 in 2023 and further increased to $598,643 in 2024, representing a 10.2% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that both average home prices and rent prices in Fairview are likely to continue their upward trend over the next five years. Home prices are projected to increase by approximately 3-5% annually, potentially reaching around $700,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially surpassing $1,600 per month within the same timeframe.
In summary, Fairview has experienced a significant shift towards a renter-majority population, driven by rapidly increasing home prices and despite periods of low interest rates. The consistent growth in both population and housing costs suggests a strong demand for housing in this area, with renters making up an increasingly large portion of the community. As home prices and rents continue to rise, affordability may become a growing concern for both potential homebuyers and renters in this densely populated New Jersey borough.
