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Derry, NH: Rising Home Values and Stable Ownership in a Vibrant Community
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
Derry, located in New Hampshire, is a vibrant community with a rich history and a dynamic housing market. Over the past decade, this city has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Derry has shown a gradual increase from 2013 to 2022. In 2013, 60% of residents were homeowners, and this figure rose to 62% by 2022. This upward trend in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $194,047, which steadily climbed to $413,317 by 2022, representing a substantial 113% increase over this period.
The relationship between federal interest rates and homeownership rates in Derry presents an interesting dynamic. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 0.14%), the homeownership rate only increased modestly from 60% to 62%. This suggests that while low interest rates may have contributed to the stability and slight increase in homeownership, other local factors also played a significant role in housing decisions.
Conversely, the percentage of renters in Derry decreased slightly from 40% in 2013 to 38% in 2022. During this same period, average rent prices showed a steady upward trend. The average rent increased from $1,288 in 2013 to $1,468 in 2022, a 14% rise. This increase in rent prices, coupled with the slight decrease in the renter population, suggests a tightening rental market, potentially driving some residents towards homeownership.
In 2023 and 2024, Derry's housing market continued its upward trajectory. The average home price reached $438,067 in 2023 and further increased to $460,173 in 2024. This represents a 11.3% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both home prices and rent in Derry over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $550,000 by 2029. Similarly, average rent prices could increase to approximately $1,700 per month. However, the rate of increase may moderate compared to the sharp rises seen in recent years, particularly if interest rates remain elevated.
In summary, Derry has demonstrated a resilient and growing housing market over the past decade. The trend towards increased homeownership, coupled with rising home values and rent prices, reflects a strong demand for housing in the area. The community's ability to maintain this growth despite fluctuating economic conditions speaks to its attractiveness as a residential location. As Derry moves forward, balancing affordability with continued growth will be key to maintaining its appeal to both homeowners and renters alike.
