Loading Content...
Exeter, NH: Rising Home Values and Shifting Ownership in a Historic Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Exeter, located in New Hampshire, is a charming community known for its rich history and educational institutions, including Phillips Exeter Academy. Over the past decade, Exeter has experienced notable shifts in homeownership rates and housing costs, reflecting broader economic trends and local market dynamics.
The homeownership rate in Exeter has shown a gradual decline from 71% in 2013 to 68% in 2022. This trend coincides with a significant increase in average home prices, which rose from $264,984 in 2013 to $496,627 in 2022, representing an 87% increase over this period. The inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Exeter. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%, which coincided with relatively stable homeownership rates around 70-72%. However, as interest rates began to rise more substantially from 2017 (1%) to 2019 (2.16%), we observed a slight decline in homeownership rates to 71%. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not immediately reverse the homeownership decline, possibly due to economic uncertainties during the COVID-19 pandemic.
As homeownership rates decreased, the percentage of renters in Exeter increased from 29% in 2013 to 32% in 2022. This shift was accompanied by fluctuations in average rent prices. Average rent rose from $1,187 in 2013 to $1,506 in 2021, an increase of 27%. However, there was a slight decrease to $1,427 in 2022. The overall upward trend in rent prices, combined with the increasing renter population, suggests growing demand for rental properties in the area.
In 2023 and 2024, Exeter continued to experience rising average home prices, reaching $531,602 in 2023 and $560,775 in 2024. This represents a 13% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability and contributing to the continued upward pressure on home prices.
Looking ahead, predictive models suggest that average home prices in Exeter may continue to rise over the next five years, potentially reaching around $650,000 by 2029 if current trends persist. Average rent prices are also expected to increase, potentially surpassing $1,700 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Exeter has experienced a gradual shift towards a higher proportion of renters, driven by rising home prices and fluctuating interest rates. The substantial increase in average home prices, particularly in recent years, has outpaced growth in average rent prices, potentially making homeownership more challenging for some residents. As the community continues to evolve, these housing market dynamics will likely play a crucial role in shaping Exeter's demographic and economic landscape.
