Loading Content...
Keene, NH: Rising Home Values and Shifting Ownership Patterns in a Picturesque College Town
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Keene, a charming city in New Hampshire, is known for its vibrant arts scene and as the host of the annual Pumpkin Festival. Over the past decade, Keene has experienced notable shifts in homeownership rates and housing costs, reflecting broader economic trends and local market dynamics. Homeownership in Keene has shown a gradual decline from 2013 to 2022. In 2013, the homeownership rate stood at 56%, but by 2022, it had decreased to 51%. This downward trend coincides with a significant increase in average home prices. In 2015, the average home price in Keene was $164,955, and by 2022, it had risen dramatically to $282,009, representing a 71% increase over seven years. This substantial rise in home prices likely contributed to the declining homeownership rate, as affordability became a growing challenge for potential buyers.
Federal interest rates have played a crucial role in shaping homeownership trends in Keene. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low rates initially supported homeownership, with the rate holding steady at around 53-54% between 2017 and 2021. However, the sharp rise in home prices during this period appears to have outweighed the benefits of low interest rates, leading to the overall decline in homeownership.
The rental market in Keene has shown interesting dynamics. The percentage of renters increased from 44% in 2013 to 49% in 2022, inversely mirroring the decline in homeownership. Average rent prices have also risen, though not as dramatically as home prices. In 2013, the average rent was $1,111, and by 2022 it had increased to $1,175, a modest 5.8% rise over nine years. This relatively slower growth in rent prices compared to home prices may have made renting a more attractive option for some residents.
In 2023 and 2024, Keene's housing market continued to evolve. The average home price in 2023 reached $306,373, a further 8.6% increase from 2022. In 2024, it climbed to $319,268, showing a 4.2% year-over-year growth. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with elevated home prices, are likely to present continued challenges for potential homebuyers in Keene.
Looking ahead, predictive models suggest that Keene's housing market will continue to see growth, albeit at a potentially slower pace. Average home prices are projected to increase by approximately 3-5% annually over the next five years, potentially reaching around $370,000 by 2029. Rent prices are expected to follow a similar trend, with annual increases of 2-4%, potentially reaching an average of around $1,350 per month by 2029.
In summary, Keene has experienced a clear shift towards a more rental-dominated housing market over the past decade, driven by rapidly increasing home prices and, more recently, rising interest rates. While rent prices have increased more modestly, the overall trend suggests a growing challenge in housing affordability for the city's residents. As Keene moves forward, balancing housing affordability with market growth will likely be a key consideration for local policymakers and community leaders.
