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Zip Code 03816: Rising Home Values and Ownership Rates in Lakeside Melvin Village
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 03816, located in Melvin Village, New Hampshire, is a picturesque area known for its scenic beauty and small-town charm. Over the past decade, this community has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 03816 has remained consistently high, ranging from 86% to 92% between 2013 and 2022. This strong preference for homeownership coincides with a substantial increase in average home prices. In 2010, the average home price was $245,756, which steadily rose to $499,898 by 2022, representing a remarkable 103.4% increase over 12 years. The most significant growth occurred between 2020 and 2022, with average home prices surging from $342,541 to $499,898, a 45.9% increase in just two years.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained stable at around 86-90%. As interest rates began to rise from 2017 to 2019, reaching 2.16% in 2019, homeownership rates actually increased slightly, peaking at 91% in 2019. This suggests that other factors, such as local economic conditions or housing supply, may have had a more significant impact on homeownership in this particular zip code than national interest rate trends.
Renter percentages in zip code 03816 have remained relatively low, fluctuating between 8% and 14% from 2013 to 2022. Average rent prices have shown considerable volatility during this period. In 2013, the average rent was $1,119, which decreased to $1,000 by 2017. However, there was a dramatic spike in 2019, with average rent reaching $2,027, before dropping back to $886 in 2020 and 2022. This volatility in rent prices could be attributed to changes in local housing supply, economic conditions, or shifts in the rental market dynamics.
Looking at the most recent data, the average home price in zip code 03816 rose to $504,667 in 2023 and further increased to $546,584 in 2024. This represents a 9.3% increase from 2023 to 2024, indicating a continued upward trend in the local housing market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the housing market in this zip code appears to remain robust, suggesting strong local demand or limited housing supply.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 03816 will continue to rise, albeit at a potentially slower rate than the sharp increases seen in recent years. Based on historical data and current market conditions, average home prices could reach approximately $650,000 to $700,000 by 2029. Average rent prices are expected to stabilize and potentially increase moderately, possibly reaching around $2,200 to $2,400 per month by 2029, assuming a return to the higher rates seen in 2019 and 2021.
In summary, zip code 03816 in Melvin Village, New Hampshire, has demonstrated a strong preference for homeownership, with rates consistently above 85%. The area has experienced significant growth in average home prices, particularly in recent years, despite rising interest rates. Rent prices have shown volatility, with dramatic fluctuations observed. Looking ahead, the housing market in this zip code is expected to continue its upward trajectory, albeit potentially at a more moderate pace, reflecting the area's desirability and economic factors.
