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Zip Code 08701: Rising Home Values and Stable Ownership in Lakewood, 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
Lakewood, New Jersey, zip code 08701, is a rapidly growing community that has experienced significant demographic and housing market changes over the past decade. This analysis explores the trends in homeownership, average home prices, and average rent prices, providing insights into the area's real estate dynamics. The homeownership rate in Lakewood has shown a slight increase in recent years, rising from 48% in 2018 to 52% in 2022. During this same period, average home prices have experienced substantial growth. In 2018, the average home price was $334,693, which increased to $494,448 by 2022, representing a 47.7% increase over four years. This upward trend in home prices appears to have a positive correlation with the increasing homeownership rate, suggesting that rising property values may be encouraging more residents to invest in homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in Lakewood. From 2010 to 2021, interest rates remained historically low, ranging from 0.08% to 2.16%. This period of low interest rates coincided with a general increase in homeownership rates, from 48% in 2015 to 52% in 2022. Lower interest rates typically make mortgages more affordable, encouraging more people to purchase homes. The slight dip in homeownership to 48% in 2017 and 2018 may be attributed to the gradual increase in interest rates during that time, from 1% in 2017 to 1.83% in 2018.
Renter percentages in Lakewood have fluctuated slightly over the years, peaking at 51% from 2015 to 2018 before declining to 48% in 2022. Average rent prices have shown some volatility but generally increased over time. In 2013, the average rent was $1,588, which increased to $1,639 in 2018, before settling at $1,560 in 2022. The population of Lakewood has grown significantly, from 87,429 in 2010 to 133,452 in 2022, a 52.6% increase. This population growth may have contributed to the overall upward pressure on rent prices, despite minor fluctuations.
As of 2024, the average home price in Lakewood has reached $594,401, showing a continued upward trajectory from the 2022 figure of $494,448. This represents a 20.2% increase over two years. The federal interest rate in 2024 stands at 5.33%, significantly higher than the 1.68% rate in 2022. Despite this substantial increase in interest rates, home prices have continued to rise, suggesting strong demand in the local real estate market.
Looking ahead, based on the historical trends and current market conditions, we can project that average home prices in Lakewood may continue to increase over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are likely to follow a similar upward trend, driven by population growth and housing demand. However, the rate of increase may be moderated by new housing developments and potential shifts in the local economy.
In summary, Lakewood has demonstrated a robust real estate market with increasing homeownership rates, rapidly rising average home prices, and generally increasing average rent prices. The area's significant population growth has been a key driver of these trends. While higher interest rates may impact affordability, the strong demand for housing in this zip code suggests continued growth in both the homeownership and rental markets in the coming years.
