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Zip Code 07632: Rising Home Values and Shifting Ownership Trends in Englewood Cliffs, 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
Englewood Cliffs, located in zip code 07632 in New Jersey, is a small yet affluent community known for its scenic views of the Hudson River and proximity to New York City. This area has experienced notable shifts in homeownership rates and property values over the past decade, with average home prices and rent costs showing significant upward trajectories.
The homeownership rate in Englewood Cliffs has seen a slight decline from 2013 to 2022. In 2013, 93% of residents were homeowners, but by 2022, this figure had decreased to 83%. Conversely, average home prices have shown a substantial increase during this period. In 2013, the average home price was $1,057,834, rising to $1,440,532 by 2022, representing a 36% increase over nine years. This inverse relationship suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a role in homeownership trends in Englewood Cliffs. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership remained relatively stable at around 88%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The percentage of renters in Englewood Cliffs has increased from 6% in 2013 to 17% in 2022, correlating with a dramatic rise in average rent prices. In 2013, the average rent was $1,112, but by 2022, it had soared to $3,422, a staggering 208% increase. This surge in rental costs, coupled with the growing renter population, suggests a shift in the local housing market dynamics, possibly driven by the area's desirability and limited housing supply.
Looking at more recent data, the average home price in Englewood Cliffs continued to rise, reaching $1,463,054 in 2023 and $1,494,284 in 2024. This represents a further increase of 3.7% from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, standing at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Englewood Cliffs will continue to appreciate, albeit at a potentially slower rate due to higher interest rates. Projections suggest average home prices could reach approximately $1,700,000 by 2029. Average rent prices are also expected to continue their upward trajectory, potentially reaching around $4,000 per month in the same timeframe, assuming current economic conditions and local market factors remain relatively stable.
In summary, Englewood Cliffs has experienced a gradual shift from a predominantly homeowner community to one with an increasing renter population. This change has occurred alongside substantial increases in both average home prices and rent costs. The interplay between rising property values, increasing interest rates, and changing demographics suggests a dynamic and evolving housing market in this desirable New Jersey borough.
