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Rising Home Values and Declining Ownership in Zip Code 03062: Nashua's Changing Housing Landscape
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
Zip code 03062, situated in Nashua, New Hampshire, is an area known for its industrial heritage and proximity to Boston. This region has undergone significant changes in homeownership rates and housing prices over the last decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 03062 has experienced a gradual decline from 74% in 2013 to 68% in 2022. Simultaneously, average home prices have seen a substantial increase, rising from $228,489 in 2013 to $441,632 in 2022, marking a 93% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained historically low, ranging from 0.1% to 0.4%. During this time, homeownership rates stayed relatively stable, between 74% and 71%. However, as interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 68%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The renter population in zip code 03062 has increased from 26% in 2013 to 32% in 2022. This growth in the renter population correlates with a rise in average rent prices, which increased from $1,550 in 2013 to $1,748 in 2022, a 12.8% increase. The population of the zip code has also grown during this period, from 26,811 in 2013 to 28,267 in 2022, potentially contributing to increased demand for rental properties.
In 2023 and 2024, the housing market in zip code 03062 continued to evolve. Average home prices reached $471,087 in 2023 and further increased to $501,846 in 2024, representing a 13.6% rise over two years. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Looking ahead, predictive models suggest that average home prices in zip code 03062 may continue to rise over the next five years, potentially reaching around $600,000 by 2029 if current trends persist. Average rent prices are also expected to increase, potentially surpassing $2,000 per month within the same timeframe. However, these projections are subject to various economic factors and market conditions.
In summary, zip code 03062 has experienced a shift towards a higher proportion of renters, coinciding with substantial increases in both home prices and rent. The interplay between federal interest rates, housing affordability, and population growth has shaped these trends. As the area continues to evolve, balancing housing affordability with market demand will likely remain a key challenge for local policymakers and residents alike.
