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Zip Code 07656: Park Ridge's Rising Home Values and Strong Ownership Trends
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
Park Ridge, located in zip code 07656 in New Jersey, has experienced notable shifts in homeownership rates 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, Park Ridge saw a gradual increase in homeownership rates. In 2013, the percentage of owner-occupied homes stood at 79%, which rose to 82% by 2022. This upward trend in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $489,385, which climbed to $673,455 by 2022, representing a remarkable 37.6% increase over this period.
The relationship between federal interest rates and homeownership rates in Park Ridge shows an interesting pattern. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 1.83%), homeownership rates remained relatively stable, fluctuating between 78% and 83%. This suggests that other local factors may have played a more significant role in homeownership decisions than interest rates alone.
Renter percentages in Park Ridge have shown a slight decline over the years, dropping from 21% in 2013 to 18% in 2022. Interestingly, average rent prices have not followed a consistent trend during this period. The average rent peaked at $1,715 in 2015 before declining to $1,551 in 2022. This fluctuation in rent prices, coupled with the decreasing renter percentage, could indicate a shift towards homeownership or changes in the local rental market dynamics.
In 2023 and 2024, Park Ridge continued to see growth in average home prices. The average home price reached $709,617 in 2023 and further increased to $751,892 in 2024. This represents a significant 11.6% increase from 2022 to 2024. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and mortgage affordability.
Looking ahead, based on historical trends and current market conditions, we can expect average home prices in Park Ridge to continue their upward trajectory over the next five years. A conservative estimate suggests an annual growth rate of 3-5%, which could push average home prices above $850,000 by 2029. Average rent prices, which have shown more volatility, may stabilize and potentially increase at a modest rate of 1-2% annually, reaching around $1,700 by 2029.
In summary, Park Ridge has demonstrated a strong trend towards homeownership, with increasing owner-occupancy rates and rising average home prices. The resilience of the housing market, even in the face of fluctuating interest rates, suggests a robust local economy and high desirability of the area. While the rental market has shown some variability, the overall trend points towards a preference for homeownership in this New Jersey borough.
