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Zip Code 07823: Declining Homeownership and Rising Home Values in Belvidere, 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
Belvidere, New Jersey, zip code 07823, is a small town with a rich history dating back to the 18th century. Over the past decade, this area has experienced significant shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Belvidere has seen a notable decline from 2013 to 2022. In 2013, 78% of residents owned their homes, but by 2022, this figure had dropped to 67%. This 11 percentage point decrease coincided with a substantial increase in average home prices. In 2013, the average home price was $185,142, which rose steadily to reach $311,541 by 2022, representing a 68% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Belvidere. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 71% to 75%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined more sharply, falling from 69% in 2017 to 67% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates declined, the percentage of renters in Belvidere increased from 21% in 2013 to 33% in 2022. This shift was accompanied by fluctuations in average rent prices. The average rent rose from $987 in 2013 to a peak of $1,108 in 2018, before decreasing to $968 in 2022. Interestingly, the population of Belvidere decreased from 7,189 in 2013 to 6,902 in 2022, which may have contributed to the softening of rent prices in recent years despite the increasing percentage of renters.
In 2023 and 2024, Belvidere's housing market continued to evolve. The average home price in 2023 reached $331,634, a 6.4% increase from 2022. By 2024, it further climbed to $353,769, representing a 6.7% year-over-year growth. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates, not seen since before the 2008 financial crisis, are likely to have a substantial impact on homebuying affordability and mortgage rates in the area.
Looking ahead, predictive models suggest that average home prices in Belvidere may continue to rise over the next five years, albeit at a potentially slower pace due to the high interest rate environment. Average rent prices, which have shown volatility in recent years, are projected to stabilize and potentially increase moderately as the rental market adjusts to changing economic conditions and housing demand.
In summary, Belvidere has experienced a significant shift from homeownership to renting over the past decade, driven by rising home prices and fluctuating interest rates. The recent surge in both home prices and interest rates in 2023 and 2024 presents new challenges for potential homebuyers in the area. As the housing market continues to evolve, the interplay between homeownership rates, housing prices, and economic factors will remain crucial in shaping Belvidere's residential landscape.
