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Rising Home Values and High Ownership: Amherst's Stable Housing Market
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
Amherst, New Hampshire, is a charming community located in Hillsborough County. This small town, covering just 0.73 square miles, has experienced notable shifts in its real estate landscape over the past decade. The area has maintained a high rate of homeownership while witnessing significant changes in average home prices and rent costs.
Homeownership in Amherst has remained consistently high, with a slight increase from 87% in 2019 to 90% in 2022. This trend correlates with the substantial rise in average home prices, which grew from $378,248 in 2019 to $548,093 in 2022, representing a 45% increase over just three years. The steady increase in homeownership despite rising prices suggests a strong local economy and desirable living conditions in the area.
The relationship between federal interest rates and homeownership rates in Amherst appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates dropped from 2.16% in 2019 to 0.38% in 2020, homeownership increased from 87% to 89%. This pattern continued into 2021 and 2022, with interest rates remaining low at 0.08% and 1.68% respectively, while homeownership held steady at 90%.
The rental market in Amherst has shown an interesting trend. Despite the high homeownership rate, the percentage of renters increased slightly from 11% in 2013 to 13% in 2019, before settling back to 10% in 2022. Interestingly, average rent prices have decreased over time, from $1,727 in 2013 to $1,230 in 2022, a 29% reduction. This decline in rent prices, coupled with the area's growing population from 3,974 in 2013 to 4,279 in 2022, suggests an increase in affordable rental options to accommodate the expanding community.
In 2023 and 2024, Amherst continued to see growth in average home prices. The average home price reached $588,480 in 2023 and further increased to $620,769 in 2024, representing a 13% rise from 2022 to 2024. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, predictive models suggest that average home prices in Amherst may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices, which have been declining, may stabilize or see modest increases as the rental market adjusts to the overall housing market conditions and population growth.
In summary, Amherst has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing average home prices. The community has managed to maintain its appeal despite rising home costs, while also offering more affordable rental options. The interplay between federal interest rates, homeownership, and housing prices will likely continue to shape the real estate landscape of this New Hampshire town in the coming years.
