Loading Content...
Zip Code 08302: Rising Home Values Amid Declining Ownership in Bridgeton, NJ
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Bridgeton, located in zip code 08302 in New Jersey, has experienced notable shifts in its housing market over the past decade. This analysis explores the interplay between homeownership rates, average home prices, and average rent prices in this area. The homeownership rate in Bridgeton has shown a general decline from 2013 to 2022. In 2013, 64% of housing units were owner-occupied, but by 2022, this figure had dropped to 58%. Interestingly, this decline in homeownership occurred alongside a significant increase in average home prices. In 2013, the average home price was $125,467, which rose steadily to reach $197,662 by 2022, representing a 57.5% increase over this period.
Federal interest rates have played a role in shaping homeownership trends in Bridgeton. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable around 63-64%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined more sharply, falling to 58% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership declined, the percentage of renters in Bridgeton increased from 36% in 2013 to 42% in 2022. This shift coincided with fluctuations in average rent prices. The average rent was $1,096 in 2013, peaked at $1,145 in 2017, and then settled at $1,118 in 2022. Despite the increase in the renter population, rent prices remained relatively stable, possibly due to local economic factors or housing policies.
In 2023 and 2024, Bridgeton's housing market continued to evolve. The average home price rose to $214,888 in 2023 and further increased to $224,347 in 2024, representing a 13.5% increase from 2022 to 2024. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that average home prices in Bridgeton may continue to rise over the next five years, potentially reaching around $260,000 by 2029 if current trends persist. Average rent prices are also expected to increase moderately, possibly reaching approximately $1,300 by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, Bridgeton's housing market in zip code 08302 has seen a shift towards renting, with declining homeownership rates despite rising average home prices. The interplay between federal interest rates, home prices, and rent costs has shaped these trends, with recent years showing continued growth in property values amidst rising interest rates. As the market evolves, it will be crucial to monitor how these factors continue to influence housing affordability and accessibility in the area.
