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Zip Code 08759: Rising Home Values and Stable Ownership in Crestwood Village, 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
Crestwood Village, located in zip code 08759 in New Jersey, has experienced notable changes in its housing market over the past decade. This analysis explores trends in homeownership rates, average home prices, and average rent prices, providing insights into local real estate dynamics. The homeownership rate in Crestwood Village has remained relatively stable, with a slight decline from 89% in 2013 to 86% in 2022. During this period, average home prices have shown a significant upward trend. In 2013, the average home price was $130,283, which steadily increased to $269,929 by 2022, representing a 107% increase over nine years. This substantial rise in home values, despite a minor decrease in homeownership rates, suggests strong demand for properties in the area and potentially indicates that existing homeowners have benefited from appreciating asset values.
Federal interest rates have influenced homeownership trends in Crestwood Village. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), the homeownership rate remained high at 86-89%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate stabilized at 86%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in Crestwood Village has seen a slight increase, from 11% in 2013 to 14% in 2022. Average rent prices have fluctuated during this period. In 2013, the average rent was $1,171, which peaked at $1,323 in 2015 before declining to $991 in 2022. This represents a 15.4% decrease in average rent prices over the nine-year period. The increase in the renter population, coupled with decreasing rent prices, could indicate a growing supply of rental properties or efforts to maintain occupancy rates in the face of rising homeownership costs.
The most recent data shows that the average home price in Crestwood Village continued its upward trajectory, reaching $274,761 in 2023 and further increasing to $281,847 in 2024. This represents a 4.4% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying activity and could potentially slow down the rate of home price appreciation.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Crestwood Village will continue to rise, albeit at a more moderate pace due to the higher interest rate environment. Projections suggest average home prices could reach approximately $320,000 to $340,000 by 2029. For average rent prices, a gradual increase over the next five years is expected, potentially reaching $1,100 to $1,200 per month, as the rental market adjusts to overall housing cost increases and potential shifts in demand due to higher mortgage rates.
In summary, Crestwood Village has demonstrated a robust housing market with substantial home price appreciation over the past decade, despite a slight decline in homeownership rates. The rental market has shown more volatility, with increasing renter populations but fluctuating rent prices. The recent sharp rise in interest rates may moderate future home price growth and could potentially shift some demand towards the rental market. These trends highlight the dynamic nature of the local real estate market and its responsiveness to broader economic factors.
