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Zip Code 03586: Rising Home Values and Stable Ownership in Lisbon, 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 03586, located in Lisbon, New Hampshire, showcases a dynamic real estate landscape over the past decade. This area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions. The ownership percentage has remained relatively stable, hovering around 80%, while average home prices have seen significant growth, particularly in recent years.
Examining the relationship between homeownership rates and average home prices reveals interesting trends. In 2013, the homeownership rate was 77% with an average home price of $276,180. As average home prices steadily increased, reaching $316,531 in 2018, the homeownership rate rose slightly to 79%. However, by 2022, despite a substantial jump in average home prices to $565,668, the homeownership rate dipped slightly to 77%. This suggests that while rising home values may have initially encouraged ownership, the rapid price acceleration in recent years might be making homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 03586. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), homeownership rates remained stable around 78-79%. As interest rates began to rise gradually from 2016 to 2019 (0.40% to 2.16%), homeownership rates actually increased slightly, peaking at 82% in 2017. This could be attributed to residents locking in lower rates before further increases. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight increase in homeownership to 81% and 79% respectively, likely due to more favorable borrowing conditions.
Renter percentages and average rent prices in zip code 03586 have shown some correlation over the years. In 2013, the renter percentage was 23% with an average rent of $532. As average rent prices fluctuated between $524 and $579 from 2014 to 2019, the renter percentage remained relatively stable, ranging from 18% to 26%. However, a significant shift occurred in 2020 when average rent jumped to $819, yet the renter percentage decreased to 19%. This trend continued into 2022, with average rent reaching $938 and the renter percentage slightly increasing to 23%. These changes suggest that while higher rents may have initially discouraged renting, other factors such as job market changes or housing availability might have influenced renting decisions.
In 2023 and 2024, average home prices in zip code 03586 continued their upward trajectory. The average home price reached $593,395 in 2023 and further increased to $606,263 in 2024. Concurrently, federal interest rates rose significantly, hitting 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with elevated home prices, may pose challenges for potential homebuyers in the area.
Looking ahead, predictive models suggest that average home prices in zip code 03586 may continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by demand from those priced out of the homebuying market. However, the rate of increase may moderate as affordability concerns become more pronounced.
In conclusion, zip code 03586 has demonstrated resilience in homeownership rates despite significant increases in average home prices. The interplay between federal interest rates, home prices, and rental markets has shaped the local real estate landscape. Moving forward, the area may see a continued but moderated growth in both home prices and rents, with potential shifts in the owner-renter balance depending on economic conditions and housing affordability.
