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Zip Code 08882: Rising Home Values and Shifting Ownership in South River, 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 08882, located in South River, New Jersey, has experienced significant shifts in homeownership rates and property values over the past decade. This area has seen a general trend of decreasing homeownership and increasing average home and rent prices, reflecting broader economic and demographic changes. The homeownership rate in zip code 08882 has shown a general decline from 2013 to 2022. In 2013, 70% of residents were homeowners, but by 2022, this figure had dropped to 65%. This decline coincided with a substantial increase in average home prices. In 2013, the average home price was $238,739, which rose steadily to reach $417,834 by 2022, representing a 75% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code follows a generally expected pattern. From 2013 to 2016, when interest rates were relatively low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, only declining slightly from 70% to 66%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates dropped more sharply, reaching 63% by 2019. This trend suggests that higher interest rates may have discouraged some potential homebuyers in the area.
Conversely, the percentage of renters in zip code 08882 has increased from 30% in 2013 to 35% in 2022. This rise in renters corresponds with a significant increase in average rent prices. In 2013, the average rent was $1,114, which climbed to $1,528 by 2022, a 37% increase. The population in the zip code remained relatively stable during this period, ranging from 15,929 in 2013 to 15,927 in 2022, suggesting that the increase in rent prices was not primarily driven by population growth but rather by other economic factors.
In 2023 and 2024, the average home prices in zip code 08882 continued their upward trajectory. The average home price reached $440,617 in 2023 and further increased to $467,720 in 2024. This represents a 5.5% increase from 2022 to 2023 and a 6.2% increase from 2023 to 2024. Notably, these price increases occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on the observed trends, we can forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are projected to potentially reach around $550,000 by 2029, assuming a similar growth rate. Average rent prices could climb to approximately $1,800 per month in the same timeframe. However, these projections may be influenced by various factors, including economic conditions, local development, and changes in federal interest rates.
In summary, zip code 08882 has experienced a shift towards more renters and fewer homeowners over the past decade, coupled with significant increases in both average home prices and rent costs. Despite rising interest rates, property values have continued to appreciate, suggesting strong demand in the area. These trends indicate a changing housing landscape in South River, with potential implications for affordability and community dynamics in the coming years.
