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Zip Code 07760: Rumson's Soaring Home Values and High 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 07760, located in Rumson, New Jersey, is a predominantly owner-occupied area with a strong real estate market. This affluent coastal community has seen significant fluctuations in homeownership rates and property values over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in Rumson has remained consistently high, ranging from 82% to 89% between 2013 and 2022. This strong ownership trend coincides with substantial growth in average home prices. In 2013, the average home price in zip code 07760 was $830,750. By 2022, it had increased dramatically to $1,403,123, representing a 68.9% increase over nine years. This upward trajectory in home values suggests a robust and desirable real estate market in the area.
Federal interest rates have played a significant role in homeownership trends in Rumson. When interest rates were at historic lows between 2013 and 2016, hovering around 0.1%, the homeownership rate remained stable at around 84%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership actually increased to 89%. This counterintuitive trend might be attributed to Rumson's affluent demographic, who may be less sensitive to interest rate fluctuations when purchasing homes.
The rental market in Rumson, while smaller, has also experienced noteworthy changes. The percentage of renters has remained relatively stable, fluctuating between 11% and 13% from 2013 to 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $1,756, peaking at $2,463 in 2015 before settling at $1,989 in 2022. This represents a 13.3% increase in average rent over the nine-year period, which is modest compared to the growth in home prices.
In 2023 and 2024, the real estate market in Rumson continued its upward trajectory. The average home price in 2023 reached $1,482,723, a 5.7% increase from 2022. In 2024, it further climbed to $1,568,305, representing a 5.8% year-over-year increase. Notably, these price increases occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. This suggests that Rumson's real estate market remains robust even in the face of higher borrowing costs.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both home prices and rent in zip code 07760. Over the next five years, average home prices are expected to increase by approximately 4-6% annually, potentially reaching around $2 million by 2029. Average rent prices are likely to see more modest growth, potentially increasing by 2-3% annually, which could bring the average rent to approximately $2,300 by 2029.
In summary, zip code 07760 in Rumson, New Jersey, demonstrates a strong and resilient real estate market characterized by high homeownership rates and steadily increasing property values. Despite fluctuations in interest rates and economic conditions, the area has maintained its appeal to homeowners and investors alike. The consistent growth in home prices, coupled with a stable rental market, suggests that Rumson will likely continue to be a desirable location for residents and property investors in the coming years.
