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Zip Code 03109: Rising Home Values and Strong Ownership in Manchester, 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 03109, located in Manchester, New Hampshire, presents an intriguing case study of housing trends over the past decade. This area has experienced fluctuations in homeownership rates, alongside significant changes in average home prices and average rent prices. The overall trend shows a slight decrease in homeownership from 2013 to 2022, while average home prices have steadily increased.
The homeownership rate in zip code 03109 has seen some variation between 2013 and 2022. In 2013, the homeownership rate stood at 79%, and it remained relatively stable until 2016 when it began to decline. The rate reached its lowest point of 74% in 2018 before rebounding to 80% in 2022. Interestingly, this trend coincides with changes in average home prices. In 2013, the average home price was $187,655, and it rose consistently year over year, reaching $371,734 in 2022. This represents a substantial increase of 98% over nine years.
The relationship between federal interest rates and homeownership rates in this zip code is notable. From 2013 to 2015, when interest rates were extremely low (around 0.1-0.13%), homeownership rates remained stable at 79%. As interest rates began to rise from 2016 onwards, reaching 1.83% in 2018, homeownership rates initially declined to 74%. However, despite further increases in interest rates, homeownership rates rebounded, possibly due to other economic factors or local market conditions.
Renter percentages in zip code 03109 have shown an inverse relationship to homeownership rates, as expected. The percentage of renters increased from 21% in 2013 to a peak of 26% in 2018, before decreasing to 20% in 2022. Average rent prices have generally increased over this period, albeit with some fluctuations. In 2013, the average rent was $1,122, and by 2022 it had risen to $1,272, an increase of about 13%. It's worth noting that the population in this zip code has remained relatively stable, growing from 9,519 in 2013 to 10,261 in 2022, which may have contributed to the steady demand for rental properties.
Looking at the most recent data, in 2023, the average home price in zip code 03109 reached $398,768, and in 2024, it further increased to $427,090. This represents a significant jump of 14.9% from 2022 to 2024. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen in over a decade.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 03109 will continue to rise, albeit potentially at a slower rate due to the higher interest rates. We might expect average home prices to reach around $500,000 by 2029. For average rent prices, the trend suggests a continued increase, potentially reaching approximately $1,500 by 2029, assuming similar growth patterns persist.
In summary, zip code 03109 has demonstrated resilience in its housing market, with homeownership rates rebounding to 80% in 2022 despite rising home prices and interest rates. The significant increase in average home prices, nearly doubling from 2013 to 2022, suggests strong demand in this area. While rental rates have fluctuated, they've shown overall growth, indicating a balanced market for both owners and renters. The recent sharp increases in both home prices and interest rates in 2023 and 2024 will likely shape the market dynamics in the coming years, potentially slowing the rate of price increases but maintaining an upward trajectory.
