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Zip Code 07401: Rising Home Values and Shifting Ownership Trends in Allendale, 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 07401, located in Allendale, New Jersey, has experienced notable shifts in homeownership rates and housing prices over the past decade. This suburban area has seen fluctuations in its real estate market, reflecting broader economic trends and local demographic changes. The homeownership rate in zip code 07401 has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 87%, which decreased to 80% by 2022. This trend coincides with an overall increase in average home prices. In 2013, the average home price was $646,014, which rose to $856,024 by 2022, representing a 32.5% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relatively stable homeownership rates around 86-89%. As interest rates began to rise in 2017 (1%), homeownership rates started to decline, dropping to 84% that year. This trend continued through 2020, with homeownership falling to 77% as interest rates fluctuated. The slight recovery in homeownership to 80% in 2022 occurred despite rising interest rates, possibly due to other economic factors or local market conditions.
Renter percentages in zip code 07401 have generally increased from 2013 to 2022, inversely mirroring the homeownership trend. The renter population grew from 13% in 2013 to 20% in 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $1,941, which increased to $2,351 in 2019, representing a 21% rise. However, rent prices then decreased to $1,954 in 2022, a 17% drop from the 2019 peak. This fluctuation in rent prices may be influenced by factors such as housing supply, local economic conditions, and changing demographics.
In 2023 and 2024, we see a continuation of rising average home prices in zip code 07401. The average home price reached $893,645 in 2023 and further increased to $940,005 in 2024, representing a 9.8% increase over two years. This upward trend in home prices occurs despite relatively high federal interest rates of 5.02% in 2023 and 5.33% in 2024, suggesting strong demand in the local real estate market.
Looking ahead, predictive models suggest that average home prices in zip code 07401 may continue to rise over the next five years, potentially reaching or exceeding $1 million by 2029 if current trends persist. Rent prices, which have shown more volatility, are projected to stabilize and potentially increase moderately, possibly reaching around $2,300-$2,500 by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 07401 has experienced a gradual shift towards more renters and higher average home prices over the past decade. The area has shown resilience in its housing market, with home prices continuing to rise even in the face of increasing interest rates. The interplay between homeownership rates, rent prices, and overall housing costs reflects the dynamic nature of this suburban New Jersey market.
