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Zip Code 03049: High Homeownership and Rising Home Values in Nashua, NH
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
Zip code 03049, located in Nashua, New Hampshire, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, characterized by its suburban feel and proximity to both urban amenities and natural landscapes, has seen a generally high rate of homeownership and fluctuating property values.
The homeownership rate in zip code 03049 has remained relatively stable, hovering around 90-92% from 2013 to 2022. This high rate of owner-occupied housing indicates a strong preference for homeownership in the area. Concurrently, average home prices have shown a significant upward trend. In 2013, the average home price was $388,163, which steadily increased to $683,873 by 2022, representing a substantial 76% increase over this period. This trend suggests a robust housing market with growing property values, potentially driven by the area's desirability and limited housing supply.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained high at 90-94%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), there was a slight increase in homeownership to 92%. This counterintuitive trend might be attributed to buyers rushing to purchase homes before rates increased further. The sudden drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight dip in homeownership to 91%, possibly due to economic uncertainties during the COVID-19 pandemic.
Renter percentages in zip code 03049 have fluctuated between 6% and 10% from 2013 to 2022, inversely mirroring the homeownership rates. Average rent prices have shown volatility over this period. In 2013, the average rent was $1,561, peaking at $1,691 in 2015 before experiencing fluctuations. By 2022, the average rent had decreased to $1,409, a 10% drop from its peak. This trend does not directly correlate with the increasing population, which grew from 7,985 in 2013 to 8,689 in 2022, suggesting that other factors such as local economic conditions or housing supply may be influencing rent prices.
As of 2024, the average home price in zip code 03049 has reached $774,325, marking a 13% increase from 2022. This continued appreciation in home values occurs against a backdrop of significantly higher interest rates, which stood at 5.33% in 2024. Despite these higher borrowing costs, the sustained increase in home prices suggests ongoing demand and potentially limited housing supply in the area.
Looking ahead, predictive models suggest that average home prices in zip code 03049 may continue to rise over the next five years, potentially reaching or exceeding $900,000 by 2029. This projection is based on the historical trend of steady appreciation observed since 2013. Average rent prices, however, may show more moderate growth or stabilization, potentially ranging between $1,500 and $1,800, influenced by factors such as local economic conditions and housing supply.
In summary, zip code 03049 in Nashua, New Hampshire, demonstrates a strong preference for homeownership with consistently high rates above 90%. The area has experienced significant appreciation in average home prices, nearly doubling from 2013 to 2024, despite fluctuations in interest rates. Rent prices have shown more volatility but remain an important factor for the small percentage of renters in the area. The continued rise in home values, even in the face of higher interest rates, suggests enduring demand for housing in this zip code, potentially driven by its attractive location and community features.
