ZIP Code 07106 Housing Market

📝 Local Market Notes

ZIP code 07106 exhibits a distinct price trajectory characterized by rapid appreciation followed by a recent correction. From 2021 to 2024, the Home Price Index (HPI) surged from 259.17 to 417.83, reflecting a period of intense market expansion. However, the latest 2025 data indicates a reversal, with the HPI settling at 401.0. This represents a year-over-year decline of 4.03%, signaling a cooling phase after the previous three years of double-digit gains. The 41-year data history confirms this ZIP has experienced significant long-term value appreciation, currently sitting at a level four times its 2000 baseline. The market performance in 07106 diverges sharply from broader regional trends. While Essex County recorded a 5.81% increase and the state of New Jersey saw a 4.53% rise, ZIP 07106 contracted. This negative divergence suggests localized supply-demand imbalances or specific sub-market dynamics that differ from the county-wide average. Comparing this to neighboring ZIP 07104, which faced a steeper 14.58% drop, indicates that 07106’s correction is moderate relative to some immediate peers, though it still lags behind the growing ZIP 07050. As a sub-market, 07106 appears to be a high-value, owner-occupied enclave within a renter-heavy county. The parent county’s owner occupancy rate stands at 44.9%, with a median gross rent of $1,531. In contrast, the ZIP’s HPI of 401.0 implies home values significantly above the county median of $524,100, positioning it as a premium segment. With a national 30-year mortgage rate at 7.40%, the entry barrier for prospective buyers in 07106 is substantial. Residents and investors should note that while the area offers high equity potential, the current price adjustment reflects a market recalibration rather than a structural decline. Buyers in this specific ZIP are navigating a high-cost environment where recent price volatility demands careful timing and thorough valuation of individual properties against the broader county resilience.

Based on FHFA House Price Index data.