Zip Code 08202: Avalon's Soaring Home Values and Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Zip code 08202, located in Avalon, New Jersey, is a coastal area known for its beautiful beaches and summer tourism. This zip code has seen significant changes in homeownership rates and property values over the past decade. From 2013 to 2022, the area experienced a notable increase in homeownership, accompanied by substantial growth in average home prices.
The trend in homeownership in zip code 08202 shows a steady increase from 91% in 2013 to 96% in 2022. This rise in owner-occupied housing coincided with a dramatic surge in average home prices. In 2013, the average home price was $1,025,959, which more than doubled to $2,495,868 by 2022. This represents a staggering 143% increase in just nine years, indicating a strong correlation between rising homeownership rates and escalating property values.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, which likely contributed to the initial increase in homeownership from 91% to 89%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership in the area continued to grow, reaching 96%. This suggests that other factors, such as the desirability of the location, may have outweighed the impact of rising interest rates on homeownership in this particular zip code.
The renter population in zip code 08202 has decreased correspondingly, from 9% in 2013 to 4% in 2022. Despite this decline, average rent prices have shown some fluctuation. In 2013, the average rent was $1,654, which decreased to $1,200 in 2015 before rising again to $1,498 in 2022. This represents a modest overall decrease of 9.4% in average rent prices over the nine-year period. The fluctuation in rent prices, despite the decreasing renter population, could be attributed to the overall increase in property values and the seasonal nature of the coastal location.
In 2023, the average home price in zip code 08202 reached $2,528,008, marking a 1.3% increase from 2022. However, in 2024, there was a slight decline to $2,498,462, a decrease of 1.2%. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and further to 5.33% in 2024, potentially influencing the slight downturn in home prices.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 08202 may continue to experience moderate growth over the next five years, albeit at a slower pace than the previous decade due to higher interest rates. Average rent prices are likely to remain relatively stable or see slight increases, influenced by the limited rental market and the area's desirability as a vacation destination.
In summary, zip code 08202 has demonstrated a strong trend towards homeownership, with a significant increase in average home prices over the past decade. The area has shown resilience in maintaining high property values despite recent interest rate hikes, likely due to its attractive coastal location. The rental market, while diminishing, has maintained relatively stable prices, reflecting the unique dynamics of this desirable New Jersey borough.
