Littleton, New Hampshire, a charming community nestled in the White Mountains region, has experienced notable shifts in its housing market over the past decade. From 2013 to 2022, Littleton saw a significant decrease in homeownership rates, dropping from 56% to 45%. During this same period, average home prices rose steadily, increasing from $148,887 in 2013 to $303,972 in 2022, representing a substantial 104% increase. This inverse relationship suggests that as home prices climbed, fewer residents were able to afford homeownership, leading to a shift towards renting.

The federal interest rates played a role in these housing trends. From 2013 to 2016, interest rates remained low, hovering between 0.09% and 0.4%. During this time, homeownership rates in Littleton fluctuated between 50% and 54%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more steadily, falling to 45% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.

As homeownership declined, the percentage of renters in Littleton increased from 43% in 2013 to 55% in 2022. Concurrently, average rent prices rose from $705 in 2013 to $817 in 2022, a 16% increase. This growth in rent prices, while significant, was not as dramatic as the rise in home prices. The increasing renter population, coupled with rising rent prices, suggests a growing demand for rental properties in the area.