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Rising Home Values in New Hampton: A Decade of Steady Growth
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
New Hampton, located in New Hampshire, is a small community that has experienced notable changes in its housing market over the past decade. The city has seen fluctuations in homeownership rates, with a general trend towards higher owner occupancy. Average home prices have shown a significant upward trajectory, while average rent prices have demonstrated more modest increases.
The relationship between homeownership rates and average home prices in New Hampton reveals some interesting patterns. In 2013, the homeownership rate stood at 89%, with an average home price of $160,146. As home prices steadily increased, reaching $242,252 by 2018, the homeownership rate remained relatively stable at 88%. However, a slight dip occurred in 2019, with homeownership dropping to 85% as average home prices climbed to $255,305. Interestingly, despite the continued rise in home prices, homeownership rebounded to 90% by 2022, with average home prices reaching $402,680.
Federal interest rates appear to have influenced homeownership trends in New Hampton. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%, which coincided with homeownership rates of 89% to 93%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight decline in homeownership to 85%. However, the drop in interest rates in 2020 (0.38%) and 2021 (0.08%) may have contributed to the subsequent increase in homeownership to 90% by 2022, despite rising home prices.
Renter percentages and average rent prices in New Hampton have shown some correlation. In 2013, with 11% of residents renting, the average rent was $1,124. As the renter population fluctuated, so did rent prices. For instance, in 2015, when the renter percentage dropped to 7%, average rent decreased to $950. However, as the renter population increased to 15% in 2019, average rent rose to $1,112. By 2022, with renters comprising 10% of the population, the average rent was $1,010, showing a slight decrease despite the overall upward trend in home prices.
In 2023 and 2024, New Hampton continued to experience growth in its housing market. The average home price in 2023 reached $430,703, further increasing to $434,659 in 2024. This represents a significant jump from the 2022 average of $402,680. Concurrently, federal interest rates rose sharply, reaching 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the 1.68% rate in 2022.
Looking ahead, predictive models suggest that average home prices in New Hampton may continue to rise, albeit at a potentially slower rate due to higher interest rates. Over the next five years, average home prices could reach around $475,000 to $500,000, assuming current economic conditions persist. Average rent prices are also expected to increase, potentially reaching $1,200 to $1,300 per month within the same timeframe, reflecting the overall appreciation of the local real estate market.
In summary, New Hampton has demonstrated resilience in its housing market, with homeownership rates remaining high despite significant increases in average home prices. The community has weathered fluctuations in both the rental and ownership markets, showing adaptability to changing economic conditions. The recent sharp rise in interest rates may influence future trends, potentially moderating the rapid growth in home prices while potentially increasing demand for rentals.
