Loading Content...
Zip Code 07102: Rising Home Values and Declining Ownership in Newark's Urban Core
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 07102, located in Newark, New Jersey, has undergone significant changes in its housing market over the past decade. This urban area has experienced a general trend of decreasing homeownership rates, rising average home prices, and fluctuating average rent prices. These shifts have reshaped the residential landscape of this part of Newark.
The homeownership rate in zip code 07102 has shown a steady decline from 12% in 2013 to 7% in 2022. This decrease in homeownership coincides with a substantial increase in average home prices. In 2015, the average home price was $244,920, which rose to $397,767 by 2022, representing a 62.4% increase over seven years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership increasingly unattainable for residents in this area.
The trend in homeownership rates appears to have been influenced by federal interest rates. From 2013 to 2021, interest rates remained relatively low, ranging from 0.08% to 2.16%. Despite these favorable borrowing conditions, homeownership rates continued to decline, indicating that other factors, such as rapidly increasing home prices, may have outweighed the potential benefits of low interest rates for potential homebuyers in this zip code.
Renter occupancy in zip code 07102 has increased from 88% in 2013 to 93% in 2022, reflecting the declining homeownership trend. Average rent prices have shown some volatility over the years. In 2013, the average rent was $992, which increased to $1,113 in 2014 before declining to $888 in 2016. By 2022, the average rent had risen to $1,025. The population in this zip code has also grown from 10,585 in 2013 to 12,705 in 2022, potentially contributing to the increased demand for rental properties and the overall upward pressure on rent prices.
In 2023, the average home price in zip code 07102 reached $405,642, with federal interest rates at 5.02%. As of 2024, the average home price has further increased to $408,476, while federal interest rates have risen to 5.33%. These figures indicate a continuing upward trend in both home prices and interest rates, which could further impact homeownership rates in the area.
Looking ahead, based on the historical data and current trends, it is projected that average home prices in zip code 07102 will continue to rise over the next five years, potentially reaching around $450,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. These projections assume a continuation of current economic conditions and housing market trends.
In summary, zip code 07102 in Newark has experienced a significant shift towards a renter-dominated market, with declining homeownership rates and rising property values. The combination of increasing home prices and higher interest rates may continue to challenge potential homebuyers in this area. Meanwhile, the rental market is likely to remain strong, with rising rents reflecting the growing population and demand for housing in this urban zip code.
