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Zip Code 07202: Rising Home Values and Stable Ownership in Elizabeth's Historic Urban Area
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 07202 in Elizabeth, New Jersey, is a densely populated urban area with a diverse community that has experienced significant changes in its housing market over the past decade. This analysis focuses on the trends in homeownership rates, average home values, and rental prices from 2013 to 2024, as well as projections for the next five years. The homeownership rate in zip code 07202 has remained relatively stable between 23% and 26% from 2013 to 2022. However, average home prices have shown a remarkable upward trend, increasing from $151,299 in 2013 to $378,695 in 2022, representing a 150% increase over nine years. This substantial rise in home values occurred despite only minor changes in the homeownership rate, suggesting that factors such as local economic conditions and housing demand played a significant role in driving up prices.
Federal interest rates have historically influenced homeownership rates, with lower rates generally encouraging home purchases. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, the homeownership rate in zip code 07202 remained fairly consistent, hovering around 24-25%. The stability in homeownership rates despite low interest rates may indicate other factors at play, such as high home prices or local economic conditions, which could have offset the potential positive impact of low interest rates on homeownership.
Renter occupancy in zip code 07202 has been the dominant housing tenure, consistently accounting for 74-77% of occupied housing units from 2013 to 2022. The average rent prices have shown a general upward trend, albeit with some fluctuations. In 2013, the average rent was $1,127, which increased to $1,237 by 2022, representing a 9.8% increase over nine years. This increase in rent prices, though significant, was not as dramatic as the rise in home prices during the same period. The high percentage of renters coupled with rising rent prices suggests a strong demand for rental properties in the area, possibly driven by the area's urban location and the challenges of homeownership in a high-cost market.
In 2023 and 2024, the housing market in zip code 07202 continued its upward trajectory. The average home price reached $418,705 in 2023 and further increased to $458,852 in 2024, representing a 21.2% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with rising home prices, may present challenges for potential homebuyers in the coming years.
Looking ahead, based on historical trends and current market conditions, we can anticipate continued growth in both average home prices and rent prices over the next five years. Average home prices are projected to potentially reach around $550,000 by 2029, assuming a similar growth rate to recent years. Average rent prices may increase to approximately $1,500 per month in the same timeframe, reflecting ongoing demand for rental properties in the area.
In summary, zip code 07202 in Elizabeth, New Jersey, has experienced significant increases in both home values and rent prices over the past decade, with homeownership rates remaining relatively stable. The area's high renter occupancy rate, combined with rising housing costs, suggests a competitive and dynamic real estate market. As average home prices continue to climb and interest rates remain elevated, the coming years may present both opportunities and challenges for residents and investors in this urban New Jersey community.
