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Somersworth, NH: Homeownership Rises as Average Home Values Double
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
Somersworth, a city in New Hampshire, has experienced notable shifts in its housing market over the past decade. Located in Strafford County with zip code 03878, this small city of approximately 10 square miles has seen significant changes in homeownership rates, average home prices, and average rent prices.
The homeownership rate in Somersworth has shown an upward trend, particularly in recent years. In 2013, 55% of residents were homeowners. This figure fluctuated slightly over the years but saw a substantial increase to 65% by 2022. This rise in homeownership coincides with a dramatic increase in average home prices. In 2013, the average home price was $178,361. By 2022, this figure had nearly doubled to $353,425, representing a 98% increase over nine years.
The relationship between federal interest rates and homeownership rates in Somersworth follows a generally expected pattern. From 2013 to 2020, interest rates remained relatively low, hovering between 0.08% and 2.16%. During this period, homeownership rates in Somersworth remained relatively stable, ranging from 54% to 57%. However, as interest rates began to rise more sharply in 2022 (1.68%), we see a corresponding jump in homeownership to 65%, possibly due to residents rushing to purchase homes before rates climbed further.
Renter percentages in Somersworth have inversely mirrored the homeownership trends. In 2013, 45% of residents were renters, and this percentage decreased to 35% by 2022. Interestingly, average rent prices have shown an overall upward trend despite the decreasing proportion of renters. In 2013, the average rent was $1,229. This figure fluctuated over the years, reaching a low of $1,160 in 2017 before climbing to $1,177 in 2022. The peak average rent was observed in 2021 at $1,335.
Looking at the most recent data, average home prices in Somersworth continued to rise in 2023 and 2024, reaching $379,282 and $403,057 respectively. This represents a 14% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices in Somersworth. If the current trajectory persists, average home prices could potentially reach or exceed $500,000 by 2029. For average rent prices, the trend suggests a more moderate increase, potentially reaching around $1,400 to $1,500 per month in the next five years.
In summary, Somersworth has seen a significant increase in homeownership rates and average home prices over the past decade. This trend has been accompanied by a decrease in the proportion of renters, although average rent prices have generally increased. The city's housing market has shown resilience and growth, with homeownership becoming increasingly prevalent despite rising home prices and interest rates. These trends suggest a strong demand for housing in Somersworth, potentially driven by factors such as local economic growth or the city's appeal as a residential area.
