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Zip Code 07621: Bergenfield's Rising Home Values and Stable Ownership Rates
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 07621, located in Bergenfield, New Jersey, has witnessed interesting trends in homeownership and housing prices over the past decade. This area, known for its suburban charm and proximity to New York City, has experienced fluctuations in both ownership percentages and average home prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 07621 has remained relatively stable, with a slight increase observed in recent years. In 2013, the percentage of owner-occupied homes stood at 69%, and after a brief dip to 67% between 2015 and 2018, it rebounded to 69% in 2019 and has maintained that level through 2022. This stability in homeownership rates coincides with a steady increase in average home prices. From 2013 to 2022, average home prices in the area rose significantly, from $303,579 to $510,871, representing a substantial 68.3% increase over this period.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 07621. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This favorable financing environment likely contributed to the maintenance of high homeownership rates despite rising home prices. As interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in the area showed resilience, remaining steady at 69%. This suggests that other factors, such as the desirability of the location and local economic conditions, may have offset the potential negative impact of rising interest rates on homeownership.
The renter population in zip code 07621 has shown minor fluctuations over the years, inversely mirroring the homeownership trends. The percentage of renter-occupied units increased slightly from 31% in 2013 to 33% in 2016, before settling back to 31% from 2019 through 2022. Average rent prices have shown more volatility compared to home prices. In 2013, the average rent was $1,653, which decreased to $1,527 in 2016 before rising again to $1,820 in 2019. By 2022, the average rent had moderated to $1,613. This fluctuation in rent prices, coupled with the area's growing population (from 27,313 in 2013 to 28,804 in 2022), suggests a dynamic rental market responding to changes in supply and demand.
Looking at the most recent data, average home prices in zip code 07621 continued their upward trajectory, reaching $535,132 in 2023 and further increasing to $570,073 in 2024. This represents a significant 11.6% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the 1.68% seen in 2022. These higher interest rates may pose challenges for potential homebuyers in the coming years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 07621 will continue to rise, albeit potentially at a slower rate due to the higher interest rate environment. The average home price could potentially reach around $650,000 to $700,000 by 2029. Average rent prices are also expected to increase, possibly reaching $1,900 to $2,100 per month in the same timeframe, driven by population growth and potential shifts from buying to renting due to higher mortgage costs.
In summary, zip code 07621 has demonstrated a robust housing market with stable homeownership rates and steadily increasing average home prices. The area has shown resilience in maintaining homeownership levels despite rising interest rates, indicating strong local demand. The rental market has been more volatile, responding to population changes and economic factors. Moving forward, the interplay between rising home prices, higher interest rates, and demographic shifts will likely shape the housing landscape in this New Jersey borough.
