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Zip Code 07901: Summit's Rising 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
Summit, located in zip code 07901 in New Jersey, is a vibrant community that has experienced notable changes in its housing market over the past decade. The area has maintained a relatively stable homeownership rate, averaging around 71% from 2013 to 2022, while average home prices and average rent prices have shown significant growth.
The homeownership rate in zip code 07901 has remained relatively consistent, with minor fluctuations between 70% and 72% from 2013 to 2022. During this period, average home prices have shown a steady upward trend. In 2013, the average home price was $787,913, which increased to $1,045,889 by 2022, representing a substantial 32.7% growth over nine years. This trend suggests that despite rising home prices, the community has maintained a strong preference for homeownership.
Federal interest rates have played a role in homeownership trends in zip code 07901. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.40%, coinciding with a period of stable homeownership rates around 71-72%. As interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), homeownership rates showed slight variations but remained relatively stable. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with a slight increase in homeownership to 72% in 2020, likely due to more affordable financing options.
The renter population in zip code 07901 has remained relatively steady, ranging from 28% to 30% between 2013 and 2022. Average rent prices have shown a consistent upward trend during this period. In 2013, the average rent was $1,714, which increased to $2,080 by 2022, representing a 21.4% increase over nine years. This rise in rent prices has occurred despite relatively stable renter percentages, suggesting strong demand for rental properties in the area.
In 2023 and 2024, the housing market in zip code 07901 continued its upward trajectory. The average home price reached $1,096,175 in 2023 and further increased to $1,154,021 in 2024, marking a 10.3% rise over two years. Simultaneously, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, predictive models suggest that average home prices in zip code 07901 are likely to continue their upward trend over the next five years. Based on historical data and current market conditions, average home prices could potentially reach around $1,350,000 by 2029. Average rent prices are also expected to increase, potentially reaching approximately $2,500 by 2029, assuming current trends persist.
In summary, zip code 07901 has maintained a stable homeownership rate despite significant increases in average home prices. The area has shown resilience in the face of fluctuating interest rates, with a consistent preference for homeownership. Rental prices have also increased steadily, reflecting the desirability of the area for both owners and renters. The recent sharp rise in interest rates, coupled with continuing increases in home prices, may present new challenges for potential homebuyers in the coming years.
