ZIP Code 07856 Housing Market

📝 Local Market Notes

The housing market in ZIP code 07856, located within Morris County, New Jersey, exhibits a robust and volatile price trajectory over the past five years. The FHFA House Price Index (HPI) for this area has surged from 197.48 in 2021 to 269.04 in 2025, representing a significant appreciation of approximately 36% during that period. Although the index recorded a temporary dip to 238.04 in 2024, the subsequent rebound to 269.04 indicates strong underlying demand that has overcome recent market fluctuations. This recent recovery drives a year-over-year increase of 13.03%, a figure that significantly outpaces both the broader Morris County average of 5.88% and the New Jersey state average of 4.53%. This pronounced divergence from regional benchmarks suggests that ZIP 07856 is functioning as a distinct, high-demand sub-market rather than a representative sample of the surrounding county. The county’s median home value stands at $582,500, with a median household income of $137,326 and an owner-occupancy rate of 74.3%. Given that the ZIP’s HPI of 269.0 exceeds the HPIs of nearby ZIPs 07847 (282.2) and 07946 (249.7) in terms of relative growth velocity, the area likely attracts buyers seeking specific amenities or geographic advantages not present in adjacent communities. The high owner-occupancy rate combined with substantial household incomes supports a market characterized by established residential stability and significant equity accumulation. For prospective buyers, the data indicates that ZIP 07856 offers strong asset appreciation potential, though it operates in a premium segment of the local market. The current 30-year mortgage rate of 7.40% adds cost-of-carry pressure, yet the 13.03% annual price growth suggests that equity gains are currently outpacing financing costs. Residents and investors should note that while the market is resilient, the volatility observed between 2023 and 2024 highlights the importance of timing. The sub-market’s performance signals a niche with high liquidity and demand, making it a competitive environment where pricing power remains firmly with sellers.

Based on FHFA House Price Index data.