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Rising Home Values and Stable Ownership in Rochester, NH: A City with Colonial Roots
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
Rochester, New Hampshire, a vibrant city in Strafford County, is known for its rich history and diverse economy. Over the past decade, Rochester has experienced notable changes in its housing market while maintaining a relatively stable homeownership rate. Average home prices and rent prices have shown significant upward trends during this period.
The homeownership rate in Rochester has remained fairly consistent over the years, with slight fluctuations. In 2013, the homeownership rate was 65%, reaching its peak of 67% in 2018 and 2019, before settling at 66% in 2022. During this period, average home prices in Rochester have shown a substantial increase. In 2013, the average home price was $154,717, and it steadily rose to $323,257 by 2022, representing an impressive 109% increase over nine years.
Federal interest rates have played a role in homeownership trends in Rochester. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), the homeownership rate remained stable at around 64-65%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate actually increased slightly to 67%, possibly due to buyers rushing to purchase homes before rates climbed further.
Renter percentages in Rochester have mirrored the homeownership trends, naturally moving in the opposite direction. The renter-occupied percentage was 35% in 2013 and reached its lowest point of 33% in 2018 and 2019. By 2022, it returned to 34%. Average rent prices have also shown an upward trend, albeit with some fluctuations. In 2013, the average rent was $1,054, which decreased slightly to $998 in 2015 before rising steadily to $1,223 in 2019. After a slight dip in 2021 to $1,169, the average rent in 2022 was $1,108.
Looking at the most recent data, the average home price in Rochester continued its upward trajectory, reaching $347,610 in 2023 and climbing further to $369,342 in 2024. This represents a 14.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the city.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Rochester to continue their upward trajectory, potentially reaching around $450,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,400 per month within the same timeframe. These projections assume a continuation of current economic conditions and housing market trends.
In summary, Rochester's housing market has demonstrated resilience and growth over the past decade. The city has maintained a stable homeownership rate despite rising home prices, indicating strong demand for housing in the area. The relationship between federal interest rates and homeownership has been complex, with periods of low rates not always directly correlating to higher ownership rates. As Rochester continues to grow and evolve, its housing market is likely to remain dynamic, with both opportunities and challenges for residents and potential homebuyers.
