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Zip Code 07620: Alpine's Soaring Home Values and Ownership Trends Defy Interest Rate Impacts
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
Alpine, New Jersey, zip code 07620, is a unique area characterized by significant fluctuations in homeownership rates and housing prices over the past decade. This affluent community has seen a general trend of increasing average home prices, while ownership percentages have varied considerably. From 2013 to 2022, the percentage of owner-occupied homes in Alpine experienced notable changes. In 2013, the homeownership rate stood at 89%. This figure decreased to 81% by 2017, before rebounding to 92% in 2022. During this same period, average home prices in the area saw substantial growth. In 2013, the average home price was $2,229,618, which increased to $2,689,088 by 2022, representing a 20.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in Alpine shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.40%), homeownership rates declined from 89% to 84%. However, as interest rates began to rise from 2017 to 2019 (1.00% to 2.16%), homeownership rates stabilized around 81-84%. Interestingly, when interest rates dropped significantly in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates increased sharply to 87% and 93%.
Renter percentages and average rent prices in Alpine have shown an inverse relationship. In 2013, when 11% of housing units were renter-occupied, the average rent was $1,627. As the renter percentage increased to 19% in 2017, the average rent also rose to $1,682. However, by 2022, when the renter percentage decreased to 8%, the average rent slightly declined to $1,599. These fluctuations may be influenced by the area's changing population, which decreased from 1,772 in 2013 to 1,428 in 2022.
In 2023 and 2024, Alpine has continued to see growth in average home prices. The average home price in 2023 was $2,715,417, a 1% increase from 2022. In 2024, the average home price further increased to $2,860,503, representing a 5.3% rise from 2023. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in Alpine may continue to appreciate, potentially reaching around $3.2 million by 2029, assuming a moderate annual growth rate of 2-3%. Average rent prices, which have been relatively stable, might see modest increases to approximately $1,700-$1,800 per month by 2029, influenced by factors such as housing demand and economic conditions in the broader New Jersey region.
In summary, Alpine (07620) has demonstrated resilience in its housing market, with steadily increasing average home prices despite fluctuations in homeownership rates. The interplay between federal interest rates, homeownership, and rental markets has created a dynamic real estate environment in this affluent New Jersey community. As the area continues to evolve, it will be crucial to monitor these trends and their impact on the local housing landscape.
