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High Homeownership and Rising Home Values in Zip Code 03872: A Rural New Hampshire Case Study
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
Zip code 03872, located in Sanbornville, New Hampshire, presents an interesting case study in homeownership and housing market trends. This rural area has experienced significant fluctuations in both ownership rates and housing prices over the past decade, reflecting broader economic shifts and local market dynamics. The homeownership rate in zip code 03872 has remained consistently high, hovering around 90% throughout most of the observed period. In 2013, the ownership rate stood at 92%, and by 2022, it had increased slightly to 94%. This high rate of homeownership coincides with a dramatic increase in average home prices. In 2013, the average home price was $196,818, but by 2022, it had more than doubled to $428,996, representing a 118% increase over nine years.
The relationship between federal interest rates and homeownership rates in this area is less straightforward. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.83%), the homeownership rate remained relatively stable. This suggests that other factors, such as local economic conditions or housing supply, may have played a more significant role in homeownership trends in this zip code.
Renter percentages in zip code 03872 have fluctuated over the years, ranging from a low of 5% in 2021 to a high of 10% in 2016. Interestingly, average rent prices have not followed a consistent upward trend like home prices. In 2013, the average rent was $870, peaking at $894 in 2014, before declining to $811 in 2022. This represents a 7% decrease in average rent over nine years, contrasting sharply with the steep rise in home prices during the same period.
Looking at the most recent data, the average home price in zip code 03872 reached $446,106 in 2023 and further increased to $449,127 in 2024. This represents a 4% increase from 2022 to 2023 and a modest 0.7% increase from 2023 to 2024, suggesting a potential slowdown in home price appreciation. Notably, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 03872 will continue to rise, albeit at a slower pace than observed in recent years. Given the current high interest rate environment, we might expect a moderation in price growth, potentially reaching around $500,000 by 2029. Average rent prices, which have shown more volatility, are projected to increase modestly, possibly reaching $850-$900 per month within the next five years, assuming local economic conditions remain stable.
In summary, zip code 03872 has maintained a remarkably high homeownership rate despite significant increases in average home prices. The disconnect between rising home values and decreasing rent prices suggests a complex local housing market influenced by factors beyond simple supply and demand. The recent slowdown in home price appreciation, coupled with rising interest rates, may signal a shift in the market dynamics for this New Hampshire community in the coming years.
