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Zip Code 08005: Rising Home Values and Stable Ownership in Coastal 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
Zip code 08005, located in Barnegat, New Jersey, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This coastal area has seen a general trend of increasing property values and a slight shift in the balance between owners and renters.
The homeownership rate in zip code 08005 has remained relatively stable, with a slight decrease from 89% in 2013 to 87% in 2022. Despite this minor decline, the area maintains a high proportion of owner-occupied homes. Concurrently, average home prices have shown a substantial increase. In 2013, the average home price was $229,887, which rose steadily to $411,337 by 2022, representing a 78.9% increase over this period. This upward trend in home prices, despite the slight decrease in homeownership, suggests a robust and desirable housing market in the area.
Federal interest rates have played a role in shaping homeownership trends in zip code 08005. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained high, above 84%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates stabilized around 87%. This suggests that while rising interest rates may have deterred some potential buyers, the area's desirability and other factors have helped maintain a high rate of homeownership.
The renter population in zip code 08005 has seen a slight increase, from 11% in 2013 to 13% in 2022. This change corresponds with fluctuations in average rent prices. In 2013, the average rent was $1,734, which increased to $1,850 in 2019, before decreasing slightly to $1,752 in 2022. The population growth from 23,796 in 2013 to 27,414 in 2022 may have contributed to the increased demand for rental properties, despite the overall preference for homeownership in the area.
In 2023, the average home price in zip code 08005 reached $437,124, with interest rates at 5.02%. Moving into 2024, the average home price further increased to $458,596, while interest rates rose slightly to 5.33%. These figures indicate a continuing trend of rising property values, even in the face of higher interest rates.
Looking ahead, predictive models suggest that average home prices in zip code 08005 are likely to continue their upward trajectory over the next five years, potentially reaching around $550,000 by 2029. Average rent prices are also expected to increase, albeit at a more moderate pace, potentially reaching approximately $2,000 per month in the same timeframe.
In summary, zip code 08005 in Barnegat, New Jersey, demonstrates a strong housing market with consistently high homeownership rates and steadily increasing property values. Despite slight fluctuations in the renter population and average rent prices, the area remains predominantly owner-occupied. The continued rise in average home prices, even in the face of increasing interest rates, suggests a sustained demand for housing in this coastal New Jersey community.
