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Portsmouth's Housing Market: Soaring Home Values and Shifting Ownership in a Historic Seaport
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Portsmouth, New Hampshire, a historic seaport city with a rich maritime heritage, has experienced notable changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices in Portsmouth from 2010 to 2024.
The homeownership rate in Portsmouth has shown a gradual decline from 54% in 2013 to 52% in 2022. During this same period, average home prices have increased significantly. In 2010, the average home price in Portsmouth was $316,227, which rose to $624,343 by 2022, representing a substantial 97.4% increase over 12 years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in Portsmouth. From 2010 to 2021, interest rates remained historically low, ranging from 0.08% to 2.16%. Despite these favorable borrowing conditions, the homeownership rate still declined slightly, indicating that other factors, such as rapidly increasing home prices, may have outweighed the benefits of low interest rates for potential buyers.
Renter occupancy in Portsmouth increased from 46% in 2013 to 48% in 2022, mirroring the decline in homeownership. Average rent prices have also risen, though not as dramatically as home prices. In 2013, the average rent was $1,344, which increased to $1,312 by 2022, a modest 2.4% decrease over nine years. This relatively stable rental market, compared to the sharp rise in home prices, may have contributed to the slight shift towards renting in the city.
As of 2024, the average home price in Portsmouth has reached $707,886, a 13.3% increase from 2022. This continued appreciation occurs alongside a federal interest rate of 5.33% in 2024, which is significantly higher than the rates seen in the previous decade. The combination of high home prices and increased borrowing costs may further impact homeownership trends in the city.
Looking ahead, predictive models suggest that average home prices in Portsmouth may continue to rise over the next five years, potentially reaching around $850,000 by 2029 if current trends persist. Average rent prices are also expected to increase, possibly surpassing $1,600 per month within the same timeframe. These projections indicate a continuing trend of housing cost appreciation in Portsmouth.
In summary, Portsmouth has experienced a slight decrease in homeownership rates coinciding with a substantial increase in average home prices over the past decade. The rental market has seen more modest price changes, potentially making it a more attractive option for some residents. The recent spike in interest rates, combined with already high home prices, may continue to influence the housing market dynamics in Portsmouth in the coming years.
