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Zip Code 03216: Rising Home Values and High Ownership Rates in Franklin, New Hampshire
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 03216, located in Franklin, New Hampshire, has experienced significant changes in homeownership rates and housing prices over the past decade. This area, covering 42.48 square miles, has seen fluctuations in its population and housing market dynamics, reflecting broader economic trends and local developments.
The homeownership rate in zip code 03216 has shown resilience, with a slight increase from 85% in 2019 to 90% in 2022. This trend coincides with a substantial rise in average home prices, which grew from $242,471 in 2019 to $375,485 in 2022, representing a 54.9% increase over three years. The relationship between homeownership rates and average home prices in this area appears to be positive, suggesting that rising property values have not deterred homeownership, possibly due to strong local economic factors or demographic shifts.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 03216. The period from 2019 to 2021 saw historically low interest rates, dropping from 2.16% in 2019 to 0.08% in 2021. This likely contributed to the maintenance of high homeownership rates, as lower borrowing costs made home purchases more accessible. The slight dip in homeownership to 86% in 2021, despite low interest rates, might be attributed to other economic factors or local market conditions.
Renter percentages in zip code 03216 have inversely mirrored homeownership rates, decreasing from 15% in 2019 to 9% in 2022. Interestingly, average rent prices have shown significant volatility during this period. The average rent rose from $856 in 2019 to a peak of $1,529 in 2021, before decreasing to $1,021 in 2022. This fluctuation in rent prices, particularly the sharp increase in 2021, may have incentivized some renters to transition to homeownership, especially given the favorable interest rate environment.
Looking at the most recent data, average home prices in zip code 03216 continued to rise, reaching $403,465 in 2023 and $418,950 in 2024. This represents a 7.4% increase from 2022 to 2023 and a further 3.8% increase from 2023 to 2024. Simultaneously, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, marking a substantial shift from the low-rate environment of previous years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 03216 will continue to rise, albeit at a more moderate pace. The rapid price appreciation seen in recent years is likely to slow down due to higher interest rates, potentially reaching around $480,000 by 2029. Average rent prices are expected to stabilize and gradually increase, potentially reaching $1,200 to $1,300 per month by 2029, assuming steady economic growth and continued demand for housing in the area.
In summary, zip code 03216 has demonstrated a strong homeownership market with rising property values, despite recent increases in interest rates. The area has maintained high homeownership rates while experiencing significant growth in home prices. The rental market has shown volatility, with decreasing renter percentages and fluctuating rent prices. As the housing market continues to evolve, the interplay between homeownership rates, home prices, and rental trends will likely be influenced by broader economic factors and local market conditions.
