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Home Values Surge in Gorham, New Hampshire: A Decade of Housing Market Dynamics
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
Gorham, located in New Hampshire, is a small community with a rich history and scenic beauty. This charming town has experienced interesting shifts in homeownership rates and housing prices over the past decade. The overall trend shows an increase in homeownership percentage, accompanied by fluctuations in average home prices and average rent prices.
The homeownership rate in Gorham has shown a general upward trend from 2013 to 2022. In 2013, the homeownership rate was 67%, which steadily increased to 78% by 2019. However, there was a slight decrease to 75% in 2022. This trend coincides with changes in average home prices. In 2013, the average home price was $118,559, which dipped to $107,690 in 2016 before rising significantly to $217,378 in 2022. This represents an impressive 102% increase in average home prices from 2016 to 2022.
The relationship between federal interest rates and homeownership rates in Gorham is noteworthy. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates increased from 67% to 74%. As interest rates began to rise gradually from 2016 onwards, homeownership rates continued to climb, reaching 78% in 2019 when the interest rate was 2.16%. This suggests that factors beyond interest rates, such as local economic conditions and housing availability, may have played a significant role in homeownership trends in Gorham.
The renter percentage in Gorham has generally decreased as homeownership rates increased. In 2013, 32% of residents were renters, which declined to 22% by 2019 before slightly increasing to 25% in 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $567, which decreased to $464 in 2015 before rising again. By 2022, the average rent had increased to $732, representing a 29% increase from 2013 to 2022. The population of Gorham remained relatively stable during this period, fluctuating between 3,000 and 3,300 residents, which suggests that changes in rent prices were likely influenced by factors other than population growth.
Looking at the most recent data, the average home price in Gorham continued its upward trajectory, reaching $228,963 in 2023 and $246,570 in 2024. This represents a 13.4% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Gorham to continue rising, potentially reaching around $300,000 by 2029. This projection is based on the consistent upward trend observed since 2016. For average rent prices, the forecast suggests a continued increase, potentially reaching $900-$1,000 per month by 2029, assuming the trend of the past few years persists.
In summary, Gorham has experienced a notable increase in homeownership rates over the past decade, accompanied by significant growth in average home prices. Despite rising federal interest rates, the community has maintained a strong preference for homeownership. The rental market has seen a decrease in the percentage of renters, but average rent prices have generally increased. These trends reflect a dynamic housing market in Gorham, with potential for continued growth in both home values and rental costs in the coming years.
