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Average Home Values and Ownership in Zip Code 03755: Dartmouth's Resilient Housing Market
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
Hanover, New Hampshire, zip code 03755, is a vibrant community known for its academic presence, being home to Dartmouth College. This area has experienced notable fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The percentage of owner-occupied homes in Hanover has shown an overall upward trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate stood at 53%, gradually increasing to 64% by 2022. This rise in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $423,030, which nearly doubled to $803,730 by 2022, representing a 90% increase over this period.
The relationship between federal interest rates and homeownership rates in Hanover presents an interesting pattern. Despite historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.40%), homeownership rates showed only a modest increase from 53% to 59%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2022 (1.68%), homeownership rates continued to climb, reaching 64% in 2022. This suggests that local factors, such as the presence of Dartmouth College and the area's desirability, may have played a more significant role in homeownership trends than national interest rates alone.
Renter percentages in Hanover have generally decreased as homeownership rates increased. In 2013, 47% of housing units were renter-occupied, which decreased to 36% by 2022. Despite this decline in the proportion of renters, average rent prices have shown an upward trend. The average rent increased from $1,584 in 2013 to $1,868 in 2022, a 17.9% rise. This increase in rent prices, despite a decreasing renter population, could indicate a tight rental market or an increase in the quality of available rental properties.
Looking at the most recent data, the average home price in Hanover continued its upward trajectory, reaching $866,762 in 2023 and $915,973 in 2024. This represents a further 14% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Hanover will continue to rise, potentially reaching around $1.1 million by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, we expect a more moderate increase, potentially reaching an average of about $2,100 per month by 2029, assuming the current growth rate continues.
In summary, Hanover has experienced a notable increase in homeownership rates and a substantial rise in average home prices over the past decade. The area has shown resilience in its housing market, with home values appreciating significantly despite fluctuations in interest rates. The rental market, while shrinking in terms of the percentage of renters, has seen steady increases in average rent prices. These trends reflect the desirability of the area, likely influenced by its academic environment and local economic factors.
