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Zip Code 08831: Forsgate's Rising Home Values and Stable Ownership Rates
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
Zip code 08831, located in Forsgate, New Jersey, has experienced significant growth and changes in its housing market over the past decade. This area has maintained a consistently high rate of homeownership, with a slight upward trend in recent years, while also seeing substantial increases in average home prices and average rent prices.
The homeownership rate in zip code 08831 has shown remarkable stability, with a slight increase from 87% in 2015 to 89% in 2022. This high rate of homeownership has persisted despite the substantial rise in average home prices, which increased from $338,484 in 2015 to $494,418 in 2022, representing a 46% increase over seven years. This trend suggests a strong local economy and a continued desire for homeownership among residents, even in the face of rising prices.
The relationship between federal interest rates and homeownership rates in this area is interesting. Despite fluctuations in interest rates, the homeownership rate has remained relatively stable. For instance, when interest rates were at historic lows (0.08% in 2021), the homeownership rate was 89%. This rate remained unchanged in 2022 when interest rates rose to 1.68%, indicating that other factors beyond interest rates are influencing homeownership in this zip code.
The renter population in zip code 08831 has remained relatively small but stable, comprising 11-13% of the population between 2013 and 2022. Despite this stability, average rent prices have shown some fluctuation. In 2013, the average rent was $1,492, which decreased to $1,406 in 2017 before rising again to $1,508 in 2022. This represents a modest overall increase of 1.1% from 2013 to 2022, significantly lower than the growth in home prices during the same period.
In 2023 and 2024, the housing market in zip code 08831 continued its upward trajectory. The average home price reached $526,560 in 2023 and further increased to $559,478 in 2024, representing a 13.2% rise over two years. This growth occurred despite high interest rates of 5.02% in 2023 and 5.33% in 2024, suggesting strong demand and resilience in the local housing market.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and average rent prices over the next five years. Average home prices could potentially reach around $650,000 by 2029, assuming a conservative annual growth rate of 3%. Average rent prices may increase to approximately $1,700 by 2029, based on a modest 2% annual growth rate. However, these projections are subject to various economic factors and market conditions.
In summary, zip code 08831 demonstrates a robust housing market characterized by high homeownership rates, steadily increasing average home prices, and relatively stable average rent prices. The area has shown resilience to interest rate fluctuations and continues to attract homeowners despite rising prices. The consistent growth in population and housing values suggests a desirable living environment with strong economic fundamentals.
