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Zip Code 07110: Rising Home Values and Stable Ownership 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 07110, located in Clifton, New Jersey, has experienced notable shifts in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 07110 has remained relatively stable over the years, with slight variations. In 2013, the homeownership rate was 70%, which decreased slightly to 65% by 2019. However, it rebounded to 68% in 2022. This trend coincides with changes in average home prices. The average home price in 2013 was $344,897, which steadily increased to $523,813 by 2022, representing a 51.9% increase over nine years. Despite the rising home prices, the homeownership rate has managed to remain relatively stable, suggesting a resilient local housing market.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate in zip code 07110 decreased slightly from 70% to 65%. This counterintuitive trend might be attributed to rising home prices outpacing the benefits of low interest rates. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), the homeownership rate stabilized at 65%. Interestingly, when interest rates dropped again in 2020 (0.38%) and 2021 (0.08%), the homeownership rate increased to 68%, possibly due to more favorable borrowing conditions.
Renter percentages and average rent prices in zip code 07110 have shown an interesting relationship. In 2013, the renter-occupied percentage was 30%, with an average rent of $1,332. By 2019, the renter percentage increased to 34%, coinciding with a rise in average rent to $1,585, a 19% increase. However, by 2022, the renter percentage decreased to 32%, while the average rent continued to rise to $1,692, a 27% increase from 2013. This suggests that rising rent prices may have encouraged some renters to transition to homeownership, despite increasing home prices.
In 2023 and 2024, the housing market in zip code 07110 continued to evolve. The average home price in 2023 reached $551,737, a 5.3% increase from 2022. In 2024, it further increased to $589,814, representing a 6.9% year-over-year growth. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 07110 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $700,000 to $750,000, assuming a conservative annual growth rate of 3-5%. Average rent prices are also expected to increase, potentially reaching $1,900 to $2,100 per month by 2029, based on historical trends and accounting for potential market adjustments.
In summary, zip code 07110 has demonstrated a resilient housing market with stable homeownership rates despite rising home prices. The interplay between federal interest rates, home prices, and rent prices has shaped the local housing landscape. Moving forward, we expect continued growth in both home prices and rent prices, though the rate of increase may moderate due to higher interest rates. The area's ability to maintain a balance between homeownership and renting, even in the face of rising costs, suggests a dynamic and adaptable housing market in Clifton, New Jersey.
