New Hampshire is emerging as a prime destination for real estate investors, offering a range of markets that combine strong economic fundamentals, growing demand, and attractive investment opportunities. From the scenic beauty of Plymouth nestled in the White Mountains, to the vibrant college town atmosphere of Durham, and the thriving community of Keene, each location brings unique advantages to the table. Whether you’re looking for steady rental income, potential for property appreciation, or a stable and diverse job market, these towns present compelling cases for both new and seasoned investors. Explore these top investment spots in New Hampshire and discover why they could be the key to unlocking your next real estate venture.
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Durham, New Hampshire: A Strong Market for Real Estate Investment
Durham, located in Strafford County and near Dover, is a promising location for real estate investors seeking stable growth and consistent demand. With a population of around 16,000—63% of whom are homeowners—Durham offers a balanced mix of owner-occupied and rental properties, appealing to various investment strategies.
Key Market Drivers
Durham is home to the University of New Hampshire (UNH), which employs over 4,000 people and attracts more than 15,000 students annually. This steady influx of students, faculty, and staff ensures reliable rental demand, especially near campus. Such properties are known for stable rental income, high yields, and long-term appreciation potential.
Market Trends (2024)
- Homes Sold: About 158 in recent months, with an average price of $670,584.
- Median Sales Price: $610,000 in July 2024, an 18.4% decrease from July 2023.
- Year-to-Date Median Sales Price: $640,000, showing sustained demand.
- Days on Market: Increased to 34 days in July 2024 from just 6 days in July 2023, suggesting a shift toward a balanced market.
The increase in inventory and days on market indicates more opportunities for buyers, potentially shifting from a seller’s to a more balanced market.
Economic Stability
Outside of UNH, employment opportunities in Durham are strong in education, healthcare, and local government, with significant employers like Durham Town Offices and UNH Health Services. The town’s high average household income of $124,918 further supports housing demand.
Investment Outlook
Durham offers a mix of steady rental income and appreciation potential, driven by UNH and a diverse economy. Despite some softening in sales prices, the market remains active, providing opportunities for investors prepared to adapt to evolving conditions.
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Plymouth, New Hampshire: An Emerging Market for Real Estate Investors
Plymouth, nestled in the White Mountains and Lakes Region, is an up-and-coming market for real estate investors, offering unique opportunities often overshadowed by more prominent New Hampshire towns. With a median home price of $445,696 and a strong rent-to-price (RTP) ratio of 0.39%, Plymouth stands out against the national average of 0.3%.
Plymouth State University, with over 7,000 students, faculty, and staff, fuels a steady rental demand, ensuring reliable income for property owners. The local economy, supported by education, healthcare, and tourism, adds stability, while rising property values and fast home sales—often within a day—indicate strong market demand.
Despite an 80% drop in closed sales from July 2023 to July 2024, the median sales price surged by 65.2%, from $342,000 to $565,000. Key employers like Plymouth State University, Speare Memorial Hospital, and New Hampshire Electric Cooperative provide job stability, while tourism attracts short-term rental opportunities.
The increased inventory of homes (up 116.7%) suggests a stabilizing market, although homes still sell above the asking price, signaling strong buyer interest. Potential drawbacks, such as higher insurance costs and potential market saturation, should be considered.
Overall, Plymouth presents a promising opportunity for investors seeking capital appreciation and rental income growth in a dynamic and evolving market.
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Keene, New Hampshire: A Growing Market for Real Estate Investors
Keene, located in southwestern New Hampshire, is a charming town known for its community vibe, rich history, and natural beauty. With around 22,872 residents—54% of whom are homeowners—Keene offers a strong local economy, excellent schools, and diverse recreational activities, making it an attractive place for real estate investment.
Investment Appeal
Keene State College, with over 5,400 students, creates consistent rental demand, providing strong cash flow opportunities. The town’s rental market is ideal for room-by-room leasing and value-add renovations, appealing to investors targeting both short-term gains and long-term stability.
Diverse Economy
Keene’s economy is supported by major employers like:
- C&S Wholesale Grocers: One of the largest in the U.S., employing 1,000-4,999 people.
- Cheshire Medical Center/Dartmouth-Hitchcock Keene: A key healthcare provider with 500-999 employees.
- Markem-Imaje and Timken Company: Leaders in manufacturing and technology, each employing 500-999 people.
- Keene State College: A major employer in education.
These companies provide stable jobs and attract new residents, supporting the local housing market.
Real Estate Market Trends (2024)
- Closed Sales: Up 53.3% year-over-year, from 15 to 23.
- Median Sales Price: Increased by 24.2%, from $298,000 to $370,000.
- Sales Volume: Nearly doubled, showing a 94.0% increase.
- Days on Market: Increased by 81.8%, indicating a slight market slowdown.
- Inventory Supply: Decreased to 0.6 months, showing high demand.
Investor Outlook
Keene is a promising market for real estate investors, offering stable rental demand, diverse employment opportunities, and appreciating home values. With affordable entry points and a robust local economy, Keene provides great potential for both buy-and-hold and value-add investment strategies.