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Zip Code 07208: Rising Home Values and Shifting Ownership in Elizabeth, 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
Zip code 07208, located in Elizabeth, New Jersey, has experienced significant changes in homeownership rates and housing prices over the past decade. This urban area has seen a general trend towards renting, with homeownership rates declining while average home prices and rents have increased substantially.
The homeownership rate in zip code 07208 has shown a consistent downward trend from 2013 to 2022. In 2013, 30% of residents owned their homes, but by 2019, this figure had dropped to 25%. There was a slight increase to 27% in 2020, which remained stable through 2022. This decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $204,677, which rose steadily to $446,509 by 2022, representing a 118% increase over nine years.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with the period of steepest decline in homeownership rates from 30% to 27%. As interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, homeownership rates stabilized around 25-27%. This suggests that while low interest rates typically encourage homeownership, other factors such as rapidly increasing home prices may have outweighed the benefits of low-cost financing in this area.
The renter population in zip code 07208 has grown from 69% in 2013 to 73% in 2022. This increase in renters has been accompanied by rising average rent prices. In 2013, the average rent was $1,135, which increased to $1,273 by 2022, an increase of 12.2% over nine years. The population in the zip code has fluctuated, with 32,257 residents in 2013, dropping to 31,887 in 2018, and then rising to 33,778 in 2022. These population changes, coupled with the shift towards renting, have likely contributed to the upward pressure on rent prices.
In 2023, the average home price in zip code 07208 reached $492,520, a 10.3% increase from 2022. This trend continued into 2024, with average home prices rising to $531,097, a further 7.8% increase. Notably, federal interest rates also saw significant increases, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 07208 may continue to rise over the next five years, potentially reaching around $650,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,500 per month within the same timeframe. However, the rate of increase may slow down due to higher interest rates and potential market corrections.
In summary, zip code 07208 has experienced a significant shift towards renting, with homeownership rates declining from 30% to 27% between 2013 and 2022. This trend has occurred alongside substantial increases in both average home prices and rents. The area has seen average home prices more than double from 2013 to 2024, reaching $531,097. With federal interest rates rising to 5.33% in 2024, the housing market in this zip code may face new challenges in terms of affordability and homeownership opportunities in the coming years.
