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Zip Code 07724: Rising Home Values and Ownership in Tinton Falls, New Jersey's Suburban Gem
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 07724, located in Tinton Falls, New Jersey, presents an intriguing case study of housing market dynamics. This area has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. The overall trend shows an increase in homeownership, rising average home prices, and variable average rent prices.
The homeownership rate in zip code 07724 has shown a notable upward trend, increasing from 65% in 2016 to 70% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2016, the average home price was $356,126, which steadily climbed to $536,118 by 2022, representing a 50.5% increase over six years. This trend suggests that despite rising prices, more residents in the area were able to purchase homes.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting pattern. From 2016 to 2020, as interest rates fluctuated between 0.4% and 2.16%, homeownership rates remained relatively stable, ranging from 65% to 67%. However, in 2021 and 2022, when interest rates were at historic lows (0.08% and 1.68% respectively), homeownership rates jumped to 69% and 70%. This aligns with the well-established trend that lower interest rates generally encourage homeownership due to more affordable financing options.
Conversely, the renter percentage in zip code 07724 has decreased from 35% in 2016 to 30% in 2022. Despite this decline, average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2016, the average rent was $1,428, which increased to $1,561 in 2021, before slightly decreasing to $1,441 in 2022. The population growth from 20,140 in 2016 to 22,798 in 2022 may have contributed to the overall increase in rent prices despite the decreasing percentage of renters.
Looking at the most recent data, the average home price in zip code 07724 continued its upward trajectory, reaching $573,608 in 2023 and $609,577 in 2024. This represents a 7% increase from 2022 to 2023 and a further 6.3% increase from 2023 to 2024. Notably, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 07724 will continue to rise, potentially reaching around $750,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the recent acceleration in price growth. For average rent prices, the forecast suggests a more moderate increase, potentially reaching approximately $1,700 by 2029, assuming the current trends in population growth and housing demand continue.
In summary, zip code 07724 has demonstrated a strong trend towards increased homeownership and rising home values over the past decade. The area has shown resilience in its housing market, with home prices continuing to appreciate even in the face of rising interest rates. The rental market, while experiencing some fluctuations, has also shown an overall upward trend in prices. These trends suggest a robust and dynamic housing market in Tinton Falls, with potential for continued growth in both home values and rental prices in the coming years.
