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Zip Code 07711: Rising Home Values and Ownership Trends in Coastal Allenhurst, 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
Zip code 07711, located in Allenhurst, New Jersey, is a small coastal community with a rich history. This area has experienced significant changes in homeownership rates and property values over the past decade. From 2013 to 2022, the percentage of owner-occupied homes increased from 72% to 79%, while average home prices more than doubled during the same period.
The trend between homeownership percentage and average home prices in zip code 07711 shows a strong positive correlation. As the percentage of owner-occupied homes increased from 72% in 2013 to 81% in 2019, average home prices rose from $720,000 to $963,987. This upward trend continued, with homeownership reaching 79% in 2022 and average home prices soaring to $1,694,578. The most substantial increase in both homeownership and average home prices occurred between 2019 and 2022, with average home prices jumping by nearly 76% during this period.
Federal interest rates have played a significant role in homeownership trends in zip code 07711. The period of historically low interest rates from 2013 to 2021, ranging from 0.08% to 0.40%, coincided with the increase in homeownership from 72% to 78%. This trend aligns with the general principle that lower interest rates encourage homeownership due to more affordable financing options. However, despite the sharp increase in interest rates to 1.68% in 2022, homeownership in the area remained stable at 79%, suggesting other factors may be influencing the local housing market.
The renter percentage in zip code 07711 has shown an inverse relationship with average rent prices. As the percentage of renters decreased from 26% in 2013 to 21% in 2022, average rent prices increased from $1,044 to $1,546. The most significant change occurred between 2015 and 2019, when the renter percentage dropped from 26% to 19%, while average rent prices increased from $1,021 to $1,510. This trend suggests that as fewer rental properties became available, the remaining units commanded higher rents.
In 2023 and 2024, average home prices in zip code 07711 continued their upward trajectory, reaching $1,866,594 in 2023 and $2,036,077 in 2024. This represents a 10.2% increase from 2022 to 2023 and a further 9.1% increase from 2023 to 2024. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, marking the highest rates since 2007. Despite these elevated interest rates, the continued rise in home prices suggests strong demand and limited supply in the area.
Looking ahead, predictive models forecast a continued increase in both average home prices and rent prices over the next five years. Average home prices are projected to reach approximately $2.5 million by 2029, assuming a similar growth rate to recent years. Average rent prices are expected to surpass $1,800 per month within the same timeframe, based on the current trend.
In summary, zip code 07711 has experienced a significant increase in homeownership rates and property values over the past decade. The area has shown resilience in the face of rising interest rates, with home prices continuing to climb. The inverse relationship between renter percentages and average rent prices highlights the impact of supply and demand in the local rental market. As the community evolves, it is likely to see further increases in both home values and rental costs, potentially reshaping the demographic makeup of the area.
