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Zip Code 07738: Lincroft's Soaring Home Values and Stable Ownership Rates
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 07738, located in Lincroft, New Jersey, presents an interesting case study of homeownership and housing market trends. This suburban area has maintained a consistently high rate of owner-occupied homes, with a slight increase in recent years. The average home prices and average rent prices have shown significant growth over the past decade, reflecting the area's desirability and economic stability.
The ownership percentage in Lincroft has remained relatively stable, with a slight upward trend. In 2013, the homeownership rate was 89%, and it increased to 91% by 2022. This high rate of homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $443,005, and it rose dramatically to $813,722 by 2022, representing an impressive 83.7% increase over nine years. This trend suggests a strong correlation between the stable, high homeownership rates and the rising property values in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate in Lincroft remained stable at around 89%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight fluctuation in homeownership rates, but they ultimately stabilized at 89% in 2019. Interestingly, despite the sharp drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively), homeownership rates in Lincroft actually increased to 91%, suggesting that other local factors may have influenced this trend.
The renter percentage in Lincroft has remained relatively low, fluctuating between 9% and 13% from 2013 to 2022. Despite this low percentage, average rent prices have shown significant volatility. In 2013, the average rent was $352, which increased to $633 by 2021, representing a 79.8% increase. However, there was a slight decrease to $603 in 2022. This trend suggests that even with a small renter population, demand for rental properties in the area has been strong enough to drive up prices substantially.
As of 2024, the average home price in Lincroft has reached $916,218, representing a 12.6% increase from 2022. This continued upward trend in home prices coincides with a higher federal interest rate of 5.33% in 2024, up from 1.68% in 2022. Despite the increase in interest rates, which typically makes borrowing more expensive, the housing market in this zip code appears to remain robust, possibly due to its desirable location and limited housing supply.
Looking ahead, based on the historical trends and current market conditions, we can project that average home prices in Lincroft will likely continue to rise over the next five years, albeit potentially at a more modest pace due to higher interest rates. Average rent prices may also continue to increase, driven by the area's low vacancy rates and the overall increase in property values. However, the rate of increase may slow down if homeownership becomes more attractive due to potential future interest rate adjustments.
In summary, zip code 07738 in Lincroft demonstrates a strong housing market characterized by high homeownership rates, steadily increasing average home prices, and volatile but generally rising average rent prices. The area's ability to maintain high property values and attract homeowners, even in the face of changing interest rates, suggests a resilient and desirable real estate market in this New Jersey community.
