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Zip Code 07718: Rising Home Values and Ownership Rates in Belford, New Jersey
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
Belford, situated in zip code 07718 in New Jersey, has witnessed notable changes in homeownership rates and housing prices over the last decade. This suburban area has generally experienced rising average home prices, while homeownership percentages have fluctuated. Average rent prices have also shown an overall upward trend, despite some variations.
The relationship between homeownership rates and average home prices in Belford reveals an intriguing pattern. In 2013, the area boasted a high homeownership rate of 92%, with an average home price of $281,043. As average home prices steadily increased, reaching $357,578 in 2019, the homeownership rate decreased to 86%. This trend suggests that rising home prices may have made homeownership less accessible for some residents. However, by 2022, despite the average home price rising to $480,009, the homeownership rate rebounded to 94%, indicating a complex interplay of factors influencing homeownership beyond just price.
Federal interest rates have influenced homeownership trends in Belford. From 2013 to 2016, historically low interest rates ranging from 0.1% to 0.4% coincided with relatively stable homeownership rates between 89% and 92%. As interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, there was a slight decline in homeownership to 79% in 2018. However, the relationship is not always straightforward, as evidenced by the increase in homeownership to 94% in 2022 despite rising interest rates of 1.68%.
Renter percentages and average rent prices in Belford have shown some correlation. In 2013, with 8% of the population renting, the average rent was $1,179. As the renter population increased to 17% in 2018, average rent also rose to $1,648. However, by 2022, despite a decrease in the renter population to 6%, average rent remained relatively high at $1,727. This suggests that factors beyond supply and demand, such as overall housing market conditions and local economic factors, may influence rent prices.
In 2023 and 2024, Belford continued to see growth in average home prices. The average home price in 2023 was $508,339, and in 2024 it increased further to $544,476. This represents a significant jump from the 2022 average of $480,009. Concurrently, federal interest rates rose sharply, reaching 5.02% in 2023 and 5.33% in 2024, which marks a substantial increase from the 1.68% rate in 2022.
Looking ahead, based on the historical data and current trends, we can project continued growth in both average home prices and rent prices over the next five years. Average home prices in Belford could potentially reach around $650,000 by 2029, assuming a similar growth rate to recent years. Average rent prices might increase to approximately $2,000 per month in the same timeframe, considering the upward trend observed in the past decade.
In summary, Belford has experienced a complex interplay between homeownership rates, average home prices, and rent prices. While rising home prices have generally corresponded with fluctuations in homeownership rates, the relationship is not always direct. The area has shown resilience in maintaining high homeownership rates despite significant increases in average home prices. The rental market has also seen growth, with average rents increasing even as the renter population has fluctuated. These trends, combined with the influence of federal interest rates, paint a picture of a dynamic housing market in this New Jersey community.
