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Zip Code 03842: Hampton's Rising Home Values and Changing Ownership Landscape
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
Hampton, located in zip code 03842 in New Hampshire, is a coastal community known for its beautiful beaches and vibrant tourism industry. Over the past decade, this area has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The percentage of owner-occupied homes in Hampton has shown a general upward trend from 2013 to 2022. In 2013, 70% of homes were owner-occupied, and this figure increased to 76% by 2022. This rise in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $267,548, and by 2022, it had nearly doubled to $527,605. This substantial appreciation in home values likely contributed to the growing preference for homeownership, as residents sought to capitalize on rising property values.
The relationship between federal interest rates and homeownership rates in Hampton follows a typical pattern. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership increased from 70% to 74%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, even as interest rates began to rise more significantly from 2017 onwards, homeownership rates in Hampton remained relatively stable, suggesting other local factors were also influencing housing decisions.
Renter percentages in Hampton have shown an inverse relationship to homeownership rates, decreasing from 30% in 2013 to 24% in 2022. Interestingly, average rent prices have not followed a consistent trend during this period. In 2013, the average rent was $1,446, and it fluctuated over the years, reaching a peak of $1,454 in 2014 before declining to $1,324 in 2022. This decrease in average rent, coupled with rising home prices, may have incentivized more residents to transition from renting to homeownership.
In 2023 and 2024, Hampton continued to see growth in average home prices. The average home price rose to $561,412 in 2023 and further increased to $588,678 in 2024. This represents a 6.4% increase from 2022 to 2023 and a 4.9% increase from 2023 to 2024. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in average home prices for Hampton over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $700,000 by 2029. Average rent prices, which have been more volatile, may stabilize or show moderate increases, potentially reaching around $1,500 by 2029.
In summary, Hampton has experienced a notable increase in homeownership rates and average home prices over the past decade. The inverse relationship between homeownership and renting percentages, coupled with fluctuating rent prices, suggests a dynamic housing market influenced by both local and national economic factors. The recent surge in interest rates and continued appreciation of home values may present new challenges and opportunities for both buyers and renters in this coastal New Hampshire community.
