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Rising Home Values and Declining Ownership: Bennington's Shifting Housing Landscape
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Bennington, a small community in New Hampshire, has experienced significant changes in its housing market over the past decade. This analysis examines trends in homeownership, average home prices, and average rent prices, revealing interesting patterns in the local real estate market.
From 2013 to 2022, Bennington saw a notable decline in homeownership rates, dropping from 71% to 62%. Simultaneously, average home prices increased substantially. In 2016, the average home price was $139,423, which rose dramatically to $270,597 by 2022, representing a 94% increase over six years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership in Bennington actually increased from 71% to 79%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 62%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
As homeownership decreased, the percentage of renters in Bennington increased from 29% in 2013 to 38% in 2022. Average rent prices fluctuated during this period but showed an overall upward trend. The average rent was $1,000 in 2013, peaked at $1,072 in 2014, and after some fluctuations, reached $1,108 in 2022. This represents a 10.8% increase in average rent over nine years. The rising renter population, coupled with increasing rent prices, indicates growing demand for rental properties in the area.
In 2023 and 2024, Bennington continued to experience rising average home prices, reaching $298,205 in 2023 and $313,157 in 2024. This represents a further 15.7% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the community.
Looking ahead, predictive models suggest that both average home prices and rent prices in Bennington are likely to continue their upward trajectory over the next five years. Average home prices could potentially reach or exceed $350,000 by 2029, while average rent prices might surpass $1,200 per month. These projections are based on the consistent upward trends observed in recent years and assume relatively stable economic conditions.
In summary, Bennington has experienced a notable shift from homeownership to renting, with rising property values potentially contributing to this change. The inverse relationship between homeownership rates and both average home prices and interest rates highlights the complex dynamics of the local housing market. As the community continues to evolve, these trends will likely shape the future of housing in Bennington.
