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Zip Code 07933: Resilient Housing Market with Rising Home Values Amid Interest Rate Fluctuations
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
Gillette, located in zip code 07933 in New Jersey, is a suburban community characterized by high homeownership rates and a relatively stable housing market. Over the past decade, this area has experienced fluctuations in both homeownership percentages and average home prices, while also witnessing significant changes in average rent prices.
The homeownership rate in Gillette has remained consistently high, ranging from 88% to 93% between 2013 and 2022. This trend correlates with the average home prices in the area. In 2013, the average home price was $443,028, and by 2022, it had increased to $620,246, representing a 40% rise over this period. Notably, the highest homeownership rate of 93% in 2022 coincided with the peak in average home prices, indicating a strong local housing market despite rising costs.
Federal interest rates have influenced homeownership trends in Gillette. When interest rates were at historic lows of 0.08% in 2021, the area saw a homeownership rate of 92%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, the community's consistently high homeownership rates, even during periods of higher interest rates, suggest other factors contributing to the strong preference for owning homes in this area.
Renter percentages in Gillette have remained relatively low, fluctuating between 7% and 12% from 2013 to 2022. Average rent prices have shown significant volatility during this period. In 2013, the average rent was $2,062, which increased to $2,702 in 2017, then dropped to $1,594 in 2019, before surging to $3,000 in 2021. This volatility in rent prices does not seem to have a strong correlation with the percentage of renters, suggesting that other factors, such as local economic conditions or housing supply, may be influencing rent prices more significantly than demand from renters.
In 2023, the average home price in Gillette reached $642,938, with federal interest rates at 5.02%. Moving into 2024, we see a further increase in average home prices to $684,718, while interest rates have slightly risen to 5.33%. This continued upward trend in home prices, despite higher interest rates, indicates a robust demand for housing in the area and suggests that local factors may be outweighing the typical dampening effect of higher interest rates on home prices.
Looking ahead, predictive models suggest that average home prices in Gillette may continue to rise over the next five years, potentially reaching around $750,000 by 2029. Average rent prices are also expected to increase, possibly stabilizing around $3,500 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, Gillette (07933) demonstrates a strong preference for homeownership, with consistently high rates despite fluctuations in average home prices and interest rates. The area has experienced significant growth in property values over the past decade, with this trend likely to continue. While the rental market shows more volatility in pricing, it remains a small segment of the local housing landscape. These trends reflect a stable and desirable suburban community with a robust housing market.
