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Zip Code 03856: Rising Home Values and Strong Ownership Rates in Newfields, 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 03856, located in Newfields, New Hampshire, showcases a dynamic real estate landscape characterized by high homeownership rates and fluctuating average home prices. This area has experienced significant changes in its housing market over the past decade, reflecting broader economic trends and local demographic shifts. The ownership percentage in zip code 03856 has remained consistently high, ranging from 84% to 92% between 2013 and 2022. This strong preference for homeownership is notable, especially when compared to national averages. Average home prices in the area have shown substantial growth, particularly in recent years. In 2013, the average home price was $388,790, which increased to $673,662 by 2022, representing a 73.3% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code doesn't always follow the typical inverse correlation. For instance, despite historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable, hovering around 87-90%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased slightly, reaching 90% in 2019. This suggests that other local factors may have a stronger influence on homeownership in this area than national interest rate trends.
Renter percentages in zip code 03856 have remained relatively low, fluctuating between 7% and 16% from 2013 to 2022. Interestingly, average rent prices have shown some volatility during this period. In 2013, the average rent was $1,643, which increased to $1,653 in 2014 before declining to $1,501 in 2018. However, rent prices rebounded strongly, reaching $1,718 by 2022. This represents a 4.6% increase from 2013 to 2022, despite some fluctuations in between. The low renter percentage coupled with rising rent prices could indicate a tight rental market in the area.
In 2023 and 2024, the housing market in zip code 03856 continued its upward trajectory. The average home price in 2023 was $715,581, a 6.2% increase from 2022. In 2024, it further rose to $765,412, representing a 7% increase from 2023. This growth occurred despite significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These figures suggest a robust local housing market that has remained resilient in the face of higher borrowing costs.
Looking ahead, based on the historical data and recent trends, we can project that average home prices in zip code 03856 may continue to rise over the next five years, albeit potentially at a more moderate pace due to the higher interest rate environment. Average rent prices are also likely to increase, driven by the area's low rental supply and consistent demand. However, the rate of increase may be tempered by affordability constraints and potential new housing developments.
In summary, zip code 03856 in Newfields, New Hampshire, demonstrates a strong preference for homeownership, with consistently high owner-occupancy rates. The area has experienced significant appreciation in average home values, particularly in recent years, despite rising interest rates. The rental market, while small, has shown resilience with gradually increasing average rents. These trends, combined with the area's continued population growth, suggest a robust and desirable real estate market that has shown the ability to withstand broader economic pressures.
