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Zip Code 07512: Rising Home Values and Ownership Trends in Totowa, 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
Totowa, located in zip code 07512 in New Jersey, is a small yet dynamic community that has experienced notable shifts in homeownership and housing prices over the past decade. This analysis explores the trends in ownership percentages, average home prices, and average rent prices, providing insights into the local real estate market dynamics.
From 2013 to 2022, Totowa saw a slight increase in homeownership rates, rising from 78% to 77%. During this same period, average home prices in the area experienced significant growth, increasing from $341,690 in 2013 to $528,477 in 2022, representing a 54.7% increase over nine years. This positive correlation between homeownership rates and average home prices suggests a strong local housing market with growing property values.
The relationship between federal interest rates and homeownership rates in Totowa demonstrates some interesting patterns. As interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates fluctuated slightly but remained relatively stable around 79-80%. However, as interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), homeownership rates actually increased from 82% to 83%, suggesting that other local factors may have influenced homeownership decisions during this period.
Renter percentages in Totowa have shown some fluctuation over the years, ranging from a low of 17% in 2018 to a high of 24% in 2020. Interestingly, average rent prices have not always moved in tandem with these changes. For instance, while the renter percentage dropped from 21% in 2013 to 19% in 2014, the average rent actually decreased from $1,592 to $1,476. However, by 2019, when the renter percentage was 18%, the average rent had risen to $2,143, indicating a complex relationship between rental demand and pricing in the area.
Looking at the most recent data, the average home price in Totowa reached $553,760 in 2023 and further increased to $585,861 in 2024. This represents a significant 10.9% increase from 2022 to 2024, despite the federal interest rate rising to 5.33% in 2024. This continued appreciation in home values, even in the face of higher interest rates, suggests strong underlying demand in the local housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Totowa will continue to rise, potentially reaching around $700,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the area's apparent resilience to interest rate fluctuations. For average rent prices, we expect a more moderate increase, potentially reaching around $2,300 per month by 2029, assuming stable economic conditions and continued population growth in the area.
In summary, Totowa (07512) has demonstrated a robust housing market characterized by increasing homeownership rates and steadily rising average home prices. The area has shown resilience to interest rate changes, with property values continuing to appreciate even during periods of higher rates. While rental trends have been more variable, the overall trajectory suggests a growing demand for housing in this New Jersey community. As we look to the future, Totowa appears poised for continued growth in its real estate market, making it an area of interest for both homeowners and investors.
