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Groveton, NH: Rising Home Values Amidst Declining Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Groveton, a small community in New Hampshire, has experienced significant changes in its housing market over the past decade. This analysis examines the fluctuations in homeownership rates, average home prices, and rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Groveton has shown notable shifts since 2013. Starting at 62% in 2013, it remained stable until 2015 before sharply declining to 55% in 2016. However, the trend reversed in subsequent years, with homeownership rates gradually increasing to 59% by 2022. This fluctuation coincides with changes in average home prices, which rose from $54,901 in 2013 to $122,669 in 2022, representing a remarkable 146% increase over seven years. The relationship between federal interest rates and homeownership rates in Groveton aligns with established economic principles. Low interest rates from 2013 to 2015 coincided with stable homeownership rates around 62%. A slight increase in interest rates to 0.4% in 2016 corresponded with a drop in homeownership to 55%. However, as interest rates gradually increased to 1.68% by 2022, homeownership rates rebounded to 59%, suggesting that local economic factors may have played a more significant role in housing decisions than interest rates alone.
Renter percentages in Groveton have inversely mirrored homeownership trends. The percentage of renters increased from 38% in 2013 to a peak of 45% in 2016, before gradually decreasing to 41% in 2022. Average rent prices did not consistently follow this trend, decreasing from $780 in 2013 to $606 by 2017, despite the increase in renter percentage. Rent prices then began to rise, reaching $723 in 2022. This complex relationship between renter percentages and rent prices may be influenced by the town's declining population, which fell from 1,304 in 2013 to 906 in 2022, potentially affecting housing demand and supply dynamics.
In 2023 and 2024, Groveton experienced a continued upward trend in average home prices. The average home price reached $144,494 in 2023 and further increased to $146,250 in 2024, representing a 19.2% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade.
Looking ahead, predictive models suggest a continued, albeit slower, increase in average home prices over the next five years. Based on recent trends, average home prices could potentially reach around $170,000 by 2029. For rent prices, the model indicates a possible stabilization or slight increase, potentially reaching an average of $780-$800 per month by 2029.
In summary, Groveton has undergone significant changes in its housing market over the past decade. The town has seen a rebound in homeownership rates despite rising home prices, possibly influenced by local economic factors more than national interest rate trends. The rental market has shown resilience, with rent prices recovering after a mid-decade dip. The recent sharp increases in both home prices and interest rates in 2023 and 2024 mark a new phase in the town's housing market, potentially influencing future homeownership trends and affordability.
