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Zip Code 03857: Newmarket's Rising Home Values and Stable Ownership Rates
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 03857, located in Newmarket, New Hampshire, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown a dynamic real estate market with interesting trends in both ownership and rental sectors.
The ownership percentage in zip code 03857 has remained relatively stable, fluctuating between 54% and 57% from 2013 to 2022. Despite this stability, average home prices have shown a substantial increase. In 2013, the average home price was $219,561, which steadily rose to $442,675 by 2022, representing a remarkable 101.6% increase over nine years. This trend suggests that while the proportion of homeowners remained consistent, the value of homes in the area appreciated significantly.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates in the zip code remained steady at around 55-57%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight decrease in homeownership to 54%. However, when interest rates dropped again in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates increased back to 56%, demonstrating the inverse relationship between interest rates and homeownership.
Renter percentages in zip code 03857 have shown a slight increase from 43% in 2013 to 44% in 2022, with a peak of 47% in 2018. Interestingly, average rent prices have not followed a consistent upward trend like home prices. In 2013, the average rent was $1,281, which decreased to $1,091 in 2016 before rising again to $1,368 in 2022. This represents a modest 6.8% increase over the entire period. The fluctuation in rent prices, despite the growing population (from 9,424 in 2013 to 9,978 in 2022), suggests that other factors, such as local economic conditions or housing supply, may have influenced rental markets more than population growth alone.
In 2023 and 2024, the real estate market in zip code 03857 continued its upward trajectory. The average home price reached $471,501 in 2023 and further increased to $498,536 in 2024, showing a 6.5% year-over-year growth. This coincided with rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, the highest levels since 2007. Despite these high interest rates, home prices continued to appreciate, indicating strong demand in the area.
Looking ahead, based on the historical data and current trends, we can forecast continued growth in both home prices and rent in zip code 03857 over the next five years. Average home prices are projected to surpass $550,000 by 2029, assuming a conservative annual growth rate of 2-3%. Average rent prices are expected to reach around $1,600 per month in the same timeframe, with an estimated annual increase of 3-4%.
In summary, zip code 03857 has demonstrated a robust real estate market characterized by steadily increasing home values, relatively stable homeownership rates, and moderately rising rent prices. The area has shown resilience to fluctuating interest rates, with home prices continuing to appreciate even in periods of higher rates. These trends suggest a strong and desirable housing market in Newmarket, New Hampshire, with potential for continued growth in both the ownership and rental sectors.
