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Zip Code 08317: Rising Home Values and Steady Ownership in Dorothy, New Jersey
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 08317, located in Dorothy, New Jersey, presents an interesting case study of homeownership and housing market trends. This area has maintained a consistently high rate of homeownership over the years, with average home prices showing significant growth, particularly in recent times.
The ownership percentage in zip code 08317 has remained remarkably stable, hovering around 90% throughout the observed period. In 2013, the homeownership rate stood at 94%, and by 2022, it had only slightly decreased to 92%. This high rate of homeownership persisted despite substantial increases in average home prices. From 2013 to 2022, average home prices in the area rose from $174,398 to $305,577, representing a 75% increase over the decade.
The relationship between federal interest rates and homeownership rates in this zip code appears to deviate from typical trends. Despite historically low interest rates from 2013 to 2021, ranging from 0.08% to 2.16%, the homeownership rate remained relatively constant rather than increasing as one might expect. This suggests that other factors, such as the strong existing homeownership culture in the area, may have a more significant influence on ownership rates than interest rates alone.
Renter percentages in zip code 08317 have shown slight fluctuations but remained relatively low overall. In 2013, the renter-occupied rate was 6%, and by 2022, it had increased marginally to 8%. Despite this small increase in renters, average rent prices saw substantial growth. The average rent price rose from $1,583 in 2013 to $2,075 in 2022, marking a 31% increase. This rise in rent prices occurred alongside population growth, with the area's population increasing from 1,222 in 2013 to 1,298 in 2022, potentially contributing to increased demand for rental properties.
In 2023 and 2024, the housing market in zip code 08317 continued its upward trajectory. The average home price reached $321,602 in 2023 and further increased to $350,752 in 2024, representing a 14.8% rise over these two years. This growth occurred despite significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, predictive models suggest that both average home prices and rent prices in zip code 08317 are likely to continue their upward trend over the next five years. Home prices are projected to increase at an average annual rate of 5-7%, potentially reaching around $465,000 by 2029. Average rent prices are expected to rise at a slightly slower pace of 3-5% annually, potentially reaching approximately $2,500 by 2029.
In summary, zip code 08317 demonstrates a robust and stable housing market characterized by high homeownership rates and steadily increasing property values. The area has shown resilience to external factors such as interest rate fluctuations, maintaining its high proportion of owner-occupied homes. The consistent growth in both home prices and rent prices, coupled with a slight increase in the renter population, suggests a dynamic and potentially competitive housing market in the coming years.
