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Zip Code 07936: Florham Park's Rising Home Values and Ownership 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
Zip code 07936, located in Florham Park, New Jersey, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, known for its suburban charm and proximity to New York City, has seen a general trend of increasing homeownership and rising property values.
The ownership percentage in zip code 07936 has shown a steady upward trend, rising from 89% in 2013 to 93% in 2022. This increase in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $488,956, which climbed to $678,523 by 2022, representing a 38.8% increase over this period. The most substantial year-over-year increase occurred between 2020 and 2021, with average home prices jumping from $587,406 to $636,087, a 8.3% rise in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 07936. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%, which likely contributed to the initial increase in homeownership from 89% to 90%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership continued to increase, reaching 94% by 2019. This suggests that other local factors, such as job market strength or desirability of the area, may have outweighed the impact of rising interest rates on homeownership decisions.
The renter percentage in zip code 07936 has remained relatively stable, fluctuating between 6% and 8% from 2013 to 2022. However, average rent prices have seen substantial increases. In 2013, the average rent was $2,014, which rose to $2,791 by 2022, a 38.6% increase. The most significant jump occurred between 2017 and 2018, with average rent increasing from $2,110 to $2,683, a 27.2% rise. This sharp increase in rent prices did not significantly impact the renter percentage, which only decreased from 8% to 6% during this period, suggesting a strong demand for rental properties despite rising costs.
In 2023 and 2024, the housing market in zip code 07936 continued its upward trajectory. The average home price reached $723,422 in 2023 and further increased to $769,047 in 2024, representing a 6.6% and 6.3% year-over-year increase respectively. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically discourage home purchases, the continued rise in home prices suggests a robust demand for properties in this area.
Looking ahead, predictive models forecast a continued increase in both average home prices and rent prices over the next five years. Average home prices are expected to surpass $850,000 by 2029, while average rent prices could reach $3,500 per month. These projections are based on historical trends and assume relatively stable economic conditions.
In summary, zip code 07936 has demonstrated a strong housing market characterized by increasing homeownership rates and rising property values. The area has shown resilience to fluctuations in federal interest rates, maintaining high homeownership levels even as rates have increased. The rental market, while smaller, has seen significant price increases without substantial changes in the renter population percentage. These trends suggest a continued high demand for both owned and rented properties in this desirable New Jersey suburb.
