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Rising Home Values and Stable Ownership in Zip Code 03835: Farmington'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
Farmington, located in zip code 03835 in New Hampshire, has experienced notable shifts in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices, providing insights into the local real estate dynamics.
The homeownership rate in Farmington has shown fluctuations but maintained a generally high level. In 2013, the homeownership rate was 71%, which remained stable through 2014. There was a slight dip to 65% in 2015, followed by a gradual increase to 72% by 2020. The most recent data from 2022 shows a homeownership rate of 70%. Concurrently, average home prices have seen a substantial increase. From 2016 to 2022, the average home price rose from $175,323 to $325,340, representing an impressive 85.6% increase over six years.
The relationship between federal interest rates and homeownership rates in Farmington aligns with typical market behavior. As interest rates remained low from 2013 to 2016, hovering around 0.1% to 0.4%, the homeownership rate remained relatively stable. The slight increase in interest rates to 1% in 2017 coincided with a small uptick in homeownership to 68%. Despite rising interest rates in subsequent years, reaching 2.16% in 2019, the homeownership rate held steady at 68%, suggesting other local factors may have influenced housing decisions.
Renter percentages in Farmington have inversely mirrored homeownership rates, ranging from a high of 35% in 2015 to a low of 26% in 2021. Average rent prices have shown volatility over the years. In 2013, the average rent was $1,113, peaking at $1,282 in 2014 before declining to $991 in 2021. The most recent data for 2022 shows an average rent of $1,146, indicating a 15.6% increase from the previous year but still below the 2014 peak.
In 2023 and 2024, Farmington's housing market continued its upward trajectory. The average home price reached $349,911 in 2023 and further increased to $371,476 in 2024, representing a 14.2% rise over two years. This growth occurred despite significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local demand or limited housing supply.
Looking ahead, predictive models suggest a continued upward trend in both average home prices and rent prices over the next five years. Average home prices are projected to potentially reach the $450,000 to $500,000 range by 2029, assuming current growth rates persist. Average rent prices may see more moderate increases, potentially reaching $1,300 to $1,400 per month in the same timeframe, reflecting the historical volatility in the rental market.
In summary, Farmington (03835) has demonstrated a resilient housing market with a strong preference for homeownership. The significant appreciation in average home values, even in the face of rising interest rates, suggests a robust local real estate market. The rental market, while more volatile, has shown recent signs of recovery. These trends, combined with the projected increases in both home prices and rents, indicate a dynamic and potentially competitive housing market in the coming years.
