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Rising Home Values and High Ownership in Lower South Willow/Airport: A Decade of Housing Trends
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
The Lower South Willow/Airport neighborhood in Manchester, New Hampshire, a predominantly residential area near the city's airport, has experienced notable changes in homeownership rates and property values over the past decade. This area has seen a general trend of increasing average home prices coupled with a slight decrease in owner occupancy.
Homeownership rates in the Lower South Willow/Airport neighborhood have shown a gradual decline from 2013 to 2022. The area boasted a high 91% owner-occupancy rate in 2013, which decreased to 87% by 2022. Despite this slight decline in homeownership, average home prices in the neighborhood have seen a significant upward trend. In 2010, the average home price was $176,039, nearly doubling to $334,630 by 2022, representing a substantial increase in property values over the 12-year period.
The relationship between federal interest rates and homeownership rates in this neighborhood generally follows the economic principle that lower interest rates tend to encourage homeownership. When interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the neighborhood maintained a relatively high homeownership rate of 88% in 2020 and 86% in 2021. However, as interest rates began to rise in 2022 to 1.68%, there was a slight uptick in homeownership to 87%, suggesting that other local factors may also influence homeownership decisions in this area.
The rental market in Lower South Willow/Airport has shown interesting trends as well. The percentage of renters increased from 7% in 2014 to 13% in 2022. During this period, average rent prices fluctuated but generally trended upward. In 2013, the average rent was $1,304, which increased to $1,373 by 2022. The highest average rent was recorded in 2019 at $1,422. These trends suggest a growing demand for rental properties in the neighborhood, possibly driven by factors such as job market changes or shifts in housing preferences.
In 2023 and 2024, the neighborhood continued to see growth in average home prices. The average home price reached $356,869 in 2023 and further increased to $379,610 in 2024. This represents a significant jump from the 2022 average of $334,630. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and property values in the area.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Lower South Willow/Airport may continue to rise over the next five years, potentially reaching around $450,000 by 2029. However, this growth rate may slow down due to the higher interest rates. Average rent prices are also likely to increase, possibly reaching $1,600 by 2029, assuming the trend of increasing renter occupancy continues.
In summary, the Lower South Willow/Airport neighborhood has experienced a gradual shift from a heavily owner-occupied area to one with a slightly more balanced mix of owners and renters. Despite this shift, property values have risen significantly, indicating strong demand for housing in the area. The neighborhood's proximity to the airport and its evolving demographic makeup suggest it will remain a dynamic part of Manchester's housing market in the coming years.
