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Zip Code 08846: Rising Home Values and Shifting Ownership Patterns in Middlesex, 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
Zip code 08846, located in Middlesex, New Jersey, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area, known for its suburban charm and proximity to major urban centers, has seen a dynamic shift in its housing market, reflecting broader economic trends and local demographic changes.
The homeownership rate in zip code 08846 has shown a general decline from 2013 to 2019, followed by a slight rebound. In 2013, the homeownership rate stood at 77%, gradually decreasing to 69% by 2019. However, there was a notable increase to 74% in 2020, which has remained relatively stable through 2022 at 75%. This trend correlates interestingly with the average home prices in the area. From 2013 to 2022, average home prices rose steadily from $252,785 to $411,235, representing a substantial increase of 62.7% over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, the period of low interest rates from 2013 to 2016 (ranging from 0.11% to 0.4%) coincided with relatively high homeownership rates above 75%. As interest rates began to rise more significantly from 2017 onwards, reaching 2.16% by 2019, we observed a corresponding decline in homeownership rates to 69%. The subsequent drop in interest rates to 0.38% in 2020 aligns with the rebound in homeownership to 74%, suggesting that lower interest rates may have encouraged home buying in the area.
Renter percentages in zip code 08846 have shown an inverse relationship to homeownership rates, naturally. The renter population increased from 22% in 2013 to a peak of 31% in 2019, before decreasing to 25% in 2022. Average rent prices have fluctuated over this period, with a general upward trend. In 2013, the average rent was $1,534, rising to $1,565 in 2021, but then slightly decreasing to $1,480 in 2022. This represents a modest overall increase of 3.6% from 2013 to 2022, significantly less than the growth in average home prices over the same period.
Looking at the most recent data, the average home price in zip code 08846 reached $433,323 in 2023 and further increased to $462,318 in 2024. This represents a substantial rise of 12.4% from 2022 to 2024. Concurrently, federal interest rates have also seen a significant increase, rising from 5.02% in 2023 to 5.33% in 2024, marking the highest rates in over a decade.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 08846 will continue to rise, albeit at a potentially slower rate due to the current high interest rate environment. We project average home prices could reach approximately $525,000 to $550,000 by 2029. For average rent prices, we expect a more moderate increase, potentially reaching around $1,650 to $1,700 per month by 2029, assuming consistent economic growth and demand for rental properties in the area.
In summary, zip code 08846 has demonstrated a dynamic housing market over the past decade. The area has seen a significant increase in average home prices, a fluctuating but overall stable homeownership rate, and a modest increase in average rent prices. The recent sharp rise in both home prices and interest rates suggests a potentially challenging market for new homebuyers, which could influence future homeownership rates and rental demand in the area.
