ZIP Code 07863 Housing Market

📝 Local Market Notes

The housing market in ZIP code 07863, located in Warren County, New Jersey, has demonstrated a consistent upward trajectory over the past five years. The FHFA House Price Index (HPI) for this area rose from 153.25 in 2021 to 221.12 in 2025, indicating a cumulative appreciation of approximately 44.3%. This steady growth reflects a resilient local market that has continued to gain value despite broader economic fluctuations. The recent annual increase of 3.21% suggests that while the pace of appreciation has moderated from previous years, the underlying demand for housing in this specific sub-market remains stable. When compared to broader regional metrics, ZIP 07863 exhibits a notable divergence. The ZIP’s year-over-year growth of 3.21% lags significantly behind the Warren County average of 6.81% and the New Jersey state average of 4.53%. This underperformance relative to the county suggests that 07863 may be experiencing slower price momentum than its immediate neighbors, such as ZIP 07838, which posted a 4.69% increase. Such divergence often signals a distinct sub-market dynamic, potentially driven by specific local inventory levels or buyer preferences that differ from the county-wide trend. Contextualizing this performance with parent county data reveals a market characterized by strong owner occupancy and moderate income levels. With a median household income of $100,869 and an owner occupancy rate of 75.1%, the area supports a significant homeowner base. The county’s median home value of $346,500 provides a baseline for affordability, though the specific HPI level in 07863 indicates prices have appreciated well above the 2000 baseline. For prospective buyers, the current 30-year mortgage rate of 7.40% represents a significant cost factor. Residents should note that while the area offers stability and established ownership, the slower recent growth compared to the county average may present a more moderate entry point relative to faster-appreciating neighboring ZIP codes.

Based on FHFA House Price Index data.