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Zip Code 07504: Rising Home Values and Declining Ownership in Paterson, 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 07504, located in Paterson, New Jersey, covers an area of 0.8 square miles and has experienced significant changes in its housing market over the past decade. This densely populated urban area has seen notable fluctuations in homeownership rates, average home prices, and average rent prices from 2013 to 2022.
The homeownership rate in zip code 07504 has shown a general declining trend. In 2013, the homeownership rate stood at 40%, which decreased to 35% by 2022. During this same period, average home prices in the area experienced substantial growth. The average home price in 2013 was $204,707, which increased dramatically to $455,706 by 2022, representing a 122.6% increase over nine years.
An interesting correlation can be observed between federal interest rates and homeownership rates in this zip code. When interest rates were at historic lows between 2013 and 2016, ranging from 0.09% to 0.4%, homeownership rates remained relatively stable, fluctuating between 39% and 43%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates generally declined, dropping to 35% in 2022.
The percentage of renters in zip code 07504 has shown an overall increasing trend from 2013 to 2022. In 2013, 60% of residents were renters, which increased to 65% by 2022. Average rent prices have also risen during this period, albeit at a slower rate compared to home prices. In 2013, the average rent was $1,313, which increased to $1,402 by 2022, representing a 6.8% increase over nine years. The population in this zip code has fluctuated, reaching a low of 10,725 in 2017 before increasing to 13,558 in 2022, which may have contributed to the demand for rental properties.
In 2023 and 2024, average home prices in zip code 07504 continued to rise, reaching $476,003 in 2023 and $496,425 in 2024. This represents a further increase of 4.5% and 4.3% respectively from the previous year. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact homeownership rates and housing affordability in the area.
Based on historical trends and current market conditions, it is projected that average home prices in zip code 07504 will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the growing renter population and overall housing demand in the area.
In summary, zip code 07504 has experienced a shift towards a renter-majority population, with homeownership rates declining despite rising average home prices. The area has seen substantial appreciation in property values, outpacing the growth in average rent prices. These trends, coupled with fluctuating interest rates and population changes, illustrate a dynamic and evolving housing market in this Paterson neighborhood.
