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Zip Code 08201: Shifting Homeownership Trends and Rising Property Values in Absecon, NJ
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 08201, located in Absecon, New Jersey, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, covering 7.27 square miles, has seen its population grow to 10,122 residents in 2022, reflecting a dynamic real estate market with changing ownership patterns and fluctuating property values.
The homeownership rate in zip code 08201 has shown a steady decline from 2013 to 2022. In 2013, 79% of housing units were owner-occupied, but by 2022, this figure had dropped to 71%. This 8 percentage point decrease in homeownership coincided with significant changes in average home prices. The average home price in 2013 was $168,178, which initially decreased to $159,725 in 2017 before rebounding and surging to $271,274 by 2022. This represents a substantial 61% increase in average home prices from 2013 to 2022, despite the declining rate of homeownership.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates remained relatively stable, fluctuating between 79% and 80%. However, as interest rates began to rise more significantly in 2022 to 1.68%, homeownership rates dropped to 71%. This suggests that while low interest rates may have helped maintain homeownership levels for a time, other factors such as rising home prices may have eventually outweighed the benefits of low financing costs.
As homeownership declined, the percentage of renters in zip code 08201 increased from 20% in 2013 to 29% in 2022. This 9 percentage point rise in renters was accompanied by an increase in average rent prices. In 2013, the average rent was $1,386, which rose to $1,472 by 2022, marking a 6.2% increase. The growing renter population and rising rent prices indicate an increasing demand for rental properties in the area, possibly driven by those unable to afford home purchases as prices surged.
In 2023 and 2024, the housing market in zip code 08201 continued to see significant changes. The average home price reached $295,646 in 2023 and further increased to $312,725 in 2024, representing a 15.3% rise over two years. This upward trend occurred despite the federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, potentially indicating strong demand and limited supply in the local housing market.
Looking ahead, predictive models suggest that average home prices in zip code 08201 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the growing renter population and overall housing demand in the area.
In summary, zip code 08201 has experienced a clear shift from homeownership to renting over the past decade, with a significant increase in average home prices despite this trend. The area has shown resilience in its housing market, with prices continuing to rise even in the face of increasing interest rates. These trends point to a dynamic and evolving real estate landscape in Absecon, New Jersey, with potential implications for future housing affordability and community demographics.
