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Rising Home Values and Ownership in Zip Code 03038: Derry's Resilient 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
Zip code 03038, located in Derry, New Hampshire, has experienced significant changes in homeownership rates and housing prices over the past decade. This area, known for its rich history and proximity to Manchester, has seen a gradual shift in its housing landscape, with notable trends in both ownership and rental markets.
The homeownership rate in zip code 03038 has shown a steady increase from 63% in 2015 to 68% in 2022. This upward trend coincides with a substantial rise in average home prices. In 2015, the average home price was $214,674, which then surged to $412,648 by 2022, representing a remarkable 92% increase over seven years. This correlation suggests that despite rising home values, more residents in the area have been able to transition into homeownership.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. From 2015 to 2020, when interest rates remained relatively low (ranging from 0.13% to 0.38%), homeownership rates increased from 63% to 67%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, the continued rise in homeownership to 68% in 2022, despite a significant interest rate increase to 1.68%, indicates other factors may be influencing local homebuying decisions.
Conversely, the renter percentage in zip code 03038 has decreased from 37% in 2015 to 32% in 2022. During this period, average rent prices have shown a consistent upward trend. The average rent increased from $1,363 in 2015 to $1,513 in 2022, a 11% rise. This trend suggests that as rental costs have increased, more residents may have opted for homeownership, possibly viewing it as a more economically viable long-term option.
As of 2024, the average home price in zip code 03038 has reached $459,644, marking a significant increase from previous years. This rise has occurred despite the federal interest rate climbing to 5.33% in 2024, indicating strong demand in the local housing market. The 2023 average home price stood at $437,440, with a corresponding interest rate of 5.02%, showing a continued upward trajectory in home values even in a higher interest rate environment.
Looking ahead, our predictive models forecast a continued increase in both average home prices and rent prices over the next five years. Home prices are projected to potentially reach around $550,000 by 2029, while average rent could approach $1,800 per month. These projections are based on historical trends and current market conditions.
In summary, zip code 03038 has demonstrated a clear trend towards increased homeownership, with a corresponding rise in home values. Despite increasing interest rates and growing home prices, the area has maintained a strong housing market. The rental market, while experiencing modest price increases, has seen a decline in the percentage of renters. These trends suggest a robust and evolving housing market in Derry, with a continued preference for homeownership among residents.
