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Zip Code 07104: Rising Home Values and Ownership in Newark's Resilient Real Estate Market
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 07104, located in Newark, New Jersey, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown resilience and growth, with a population increase from 50,299 in 2010 to 55,909 in 2022, indicating a growing demand for housing in this urban neighborhood.
The ownership percentage in zip code 07104 has shown a steady increase from 20% in 2013 to 27% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $184,290, which has more than doubled to $414,653 by 2022. This correlation suggests that despite rising prices, more residents are choosing to invest in homeownership, possibly due to the potential for property value appreciation and the long-term financial benefits of owning versus renting.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership in the zip code increased from 20% to 21%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership continued to increase, reaching 23% by 2019. This trend suggests that while low interest rates initially encouraged homeownership, other factors such as job market stability and local economic growth may have sustained the upward trajectory even as rates increased.
The renter percentage in zip code 07104 has correspondingly decreased from 80% in 2013 to 73% in 2022. Despite this decline, average rent prices have shown an overall upward trend. In 2013, the average rent was $1,066, which increased to $1,109 by 2022. The highest average rent was recorded in 2021 at $1,176. This trend indicates that even with a decreasing renter population, demand for rental properties remains strong, possibly due to the area's growing population and its appeal to new residents who may not be ready for homeownership.
In 2023 and 2024, the average home prices in zip code 07104 continued to rise, reaching $445,008 in 2023 and $462,290 in 2024. This represents a 7.3% increase from 2022 to 2023 and a further 3.9% increase from 2023 to 2024. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 07104 may continue to rise over the next five years, potentially reaching around $550,000 by 2029. This projection is based on the consistent upward trend observed since 2013. Average rent prices are also expected to increase, potentially surpassing $1,300 by 2029, assuming the current growth rate continues.
In summary, zip code 07104 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. Despite fluctuations in federal interest rates, the area has maintained its appeal to both homeowners and renters. The continued population growth and rising home and rent prices suggest a robust housing market in this Newark neighborhood, with potential for further appreciation in the coming years.
