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Zip Code 07750: Rising Home Values and Shifting Ownership in Monmouth Beach
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
Monmouth Beach, located in zip code 07750 in New Jersey, is a coastal community known for its beautiful beaches and proximity to New York City. This area has experienced notable fluctuations in homeownership rates and property values over the past decade. The overall trend shows a slight decrease in homeownership, while average home prices have significantly increased, and average rent prices have shown volatility.
The homeownership rate in Monmouth Beach has seen a gradual decline from 85% in 2018 to 77% in 2022. During this same period, average home prices have experienced substantial growth. In 2018, the average home price was $635,368, which increased to $939,672 by 2022, representing a 47.9% increase over four years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a role in homeownership trends in the area. From 2013 to 2016, when interest rates were consistently low (ranging from 0.09% to 0.40%), homeownership rates increased from 81% to 83%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 77%. This pattern aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in Monmouth Beach have increased from 15% in 2018 to 23% in 2022. Interestingly, average rent prices have shown significant fluctuations during this period. In 2018, the average rent was $2,204, which decreased to $1,287 in 2019, before rising again to $2,243 in 2022. These fluctuations in rent prices, coupled with the increasing renter population, suggest a dynamic rental market that may be influenced by factors such as housing availability and local economic conditions.
As of 2024, the average home price in Monmouth Beach has reached $1,026,031, representing a 5.5% increase from 2023's average of $972,325. This continued upward trend in home prices coincides with the current federal interest rate of 5.33% in 2024, which is slightly higher than the 5.02% rate observed in 2023. These figures indicate a persisting strong housing market despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Monmouth Beach may continue to rise over the next five years, potentially reaching around $1,200,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $2,500 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Monmouth Beach has experienced a gradual shift towards a higher proportion of renters, while average home prices have substantially increased. The interplay between federal interest rates, homeownership rates, and property values highlights the complex dynamics of the local real estate market. As average home prices continue to rise, it may further impact the balance between homeowners and renters in this coastal community.
