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Dover, NH: Rising Home Values and Ownership in America's Third-Oldest City
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
Dover, the capital of New Hampshire, is a picturesque city located along the Cocheco River. Known for its rich colonial history and vibrant cultural scene, Dover has experienced steady growth in recent years. The city has seen a gradual increase in homeownership rates, coupled with rising average home prices and average rent prices, reflecting its growing appeal as a residential destination.
From 2013 to 2022, Dover witnessed a notable shift in homeownership rates. The percentage of owner-occupied housing units increased from 50% in 2013 to 52% in 2022. This upward trend in homeownership coincided with a significant rise in average home prices. In 2013, the average home price in Dover was $222,350. By 2022, this figure had nearly doubled to $436,012, representing a substantial 96% increase over the nine-year period.
The relationship between federal interest rates and homeownership rates in Dover shows an interesting pattern. Despite fluctuations in interest rates, Dover maintained a relatively stable homeownership rate. For instance, when interest rates were at a low of 0.08% in 2021, the homeownership rate stood at 52%. This rate remained consistent even as interest rates rose to 1.68% in 2022, suggesting that other factors, such as local economic conditions and housing market dynamics, may have played a more significant role in Dover's homeownership trends.
The renter percentage in Dover showed a slight decrease from 49% in 2013 to 48% in 2022. Despite this minor decline, average rent prices experienced a steady increase. In 2013, the average rent was $1,119 per month. By 2022, it had risen to $1,241, marking an 11% increase. This upward trend in rent prices, despite a relatively stable renter population, may be attributed to factors such as increased housing demand, improvements in rental properties, or overall economic growth in the area.
As of 2024, the average home price in Dover has reached $500,751, continuing the upward trajectory observed in previous years. This represents a 7% increase from 2023's average price of $468,444. Concurrently, the federal interest rate stands at 5.33% in 2024, slightly higher than the 5.02% rate in 2023. Despite these elevated interest rates, Dover's housing market remains robust, indicating strong local demand and economic resilience.
Looking ahead, predictive models suggest that Dover's housing market will continue its upward trend over the next five years. Average home prices are projected to increase by approximately 5-7% annually, potentially reaching around $650,000 by 2029. Average rent prices are expected to follow a similar pattern, with estimated annual increases of 3-4%, potentially surpassing $1,400 per month by 2029.
In summary, Dover has demonstrated a consistent trend of increasing homeownership rates and rising property values over the past decade. The city's housing market has shown resilience in the face of fluctuating interest rates, with both average home prices and rent prices experiencing steady growth. As Dover continues to attract new residents and maintain its appeal, these trends are likely to persist, making it an increasingly valuable real estate market in New Hampshire.
