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Rising Home Values and Shifting Ownership: Peterborough's Unique Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Peterborough, located in New Hampshire, is a charming community with a rich history and a dynamic real estate market. Over the past decade, this town has experienced notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Peterborough has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, 65% of residents owned their homes, but by 2022, this figure had dropped to 56%. Concurrently, average home prices have seen a significant upward trend. In 2013, the average home price was $199,273, which steadily increased to $362,470 by 2022, representing an impressive 81.9% growth over this period.
The relationship between federal interest rates and homeownership rates in Peterborough aligns with well-established economic principles. As interest rates remained historically low from 2013 to 2021 (ranging from 0.08% to 1.83%), one might expect to see increased homeownership. However, the local market showed a contrary trend, suggesting that other factors such as rising home prices may have outweighed the benefits of low interest rates for potential buyers.
The rental market in Peterborough has shown interesting trends as well. The percentage of renters increased from 35% in 2013 to 44% in 2022, inversely mirroring the decline in homeownership. Average rent prices fluctuated during this period, starting at $865 in 2013, peaking at $1,044 in 2018, and then decreasing to $813 in 2022. This decline in average rent prices, despite the increase in the renter population, could indicate an expansion in rental inventory or changes in the types of rental properties available.
In 2023 and 2024, Peterborough's real estate market continued its upward trajectory. The average home price reached $404,680 in 2023 and further increased to $423,085 in 2024, representing a 16.7% growth over these two years. This surge occurred despite a significant rise in federal interest rates, which jumped 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 Peterborough 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 shown volatility in recent years, may stabilize or increase moderately as the rental market adjusts to changing demand and economic conditions.
In summary, Peterborough has experienced a shift towards a higher proportion of renters over the past decade, coupled with substantial growth in average home prices. The interplay between federal interest rates, local economic factors, and housing market dynamics has created a complex environment for both homeowners and renters. As the market continues to evolve, it will be crucial for residents and potential investors to stay informed about these ongoing trends in Peterborough's real estate landscape.
