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Farmington, NH: Rising Home Values Amidst Market Fluctuations
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
Farmington, located in New Hampshire, is a vibrant community with a population of 5,984 as of 2022. The city has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
Homeownership rates in Farmington have shown some variability from 2013 to 2022. In 2013, the homeownership rate stood at 69%, and it remained relatively stable until 2015 when it dropped to 64%. There was a notable increase to 71% in 2017, followed by a slight decline to 65% in 2022. Interestingly, these changes in homeownership rates have coincided with significant increases in average home prices. From 2016 to 2022, average home prices in Farmington rose steadily from $175,460 to $323,851, representing an impressive 84.6% increase over six years.
The relationship between federal interest rates and homeownership rates in Farmington shows some correlation. For instance, the period from 2013 to 2016 saw relatively low interest rates (ranging from 0.09% to 0.4%), which corresponded with homeownership rates above 64%. As interest rates began to rise more significantly from 2017 onwards, there was some fluctuation in homeownership rates, though they generally remained above 65%.
Renter percentages in Farmington have fluctuated inversely to homeownership rates, as expected. The renter percentage was 31% in 2013, peaked at 36% in 2015, and then settled at 35% in 2022. Average rent prices have shown some volatility over the years. In 2013, the average rent was $1,118, which increased to $1,291 in 2014. However, there was a general downward trend in subsequent years, with the average rent reaching $1,149 in 2022. This trend is interesting when considered alongside the growing population, which increased from 5,720 in 2013 to 5,984 in 2022, suggesting that other factors beyond population growth were influencing rent prices.
As of 2024, the average home price in Farmington has reached $370,883, continuing the upward trend observed in previous years. This represents a 14.6% increase from the 2022 average price of $323,851. The federal interest rate for 2024 stands at 5.33%, which is significantly higher than the rates seen in the previous decade. This higher interest rate environment may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on the observed trends, we can project that average home prices in Farmington are likely to continue their upward trajectory over the next five years, albeit potentially at a slower pace due to higher interest rates. Average rent prices, which have shown some volatility, may stabilize or see moderate increases as the housing market adjusts to higher home prices and interest rates.
In summary, Farmington has experienced significant growth in average home prices over the past decade, with homeownership rates remaining relatively stable despite some fluctuations. The inverse relationship between homeownership and renter percentages is evident, while average rent prices have shown some variability. The recent increase in federal interest rates may influence future housing market dynamics in the area, potentially affecting both homeownership rates and housing affordability.
