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Cabbage Hill's Housing Market: Rising Home Values and Stable Ownership in Lancaster's Vibrant Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Cabbage Hill, a neighborhood in Lancaster, Pennsylvania, has experienced significant changes in its real estate market over the past decade. This analysis focuses on the trends in homeownership rates, average home prices, and rental costs from 2013 to 2024, highlighting the neighborhood's economic dynamics.
The homeownership rate in Cabbage Hill has remained relatively stable, ranging between 53% and 57% from 2013 to 2022. During this period, average home prices saw substantial growth, increasing from $85,846 in 2013 to $174,181 in 2022, marking a 103% increase over nine years. This significant rise in home prices did not significantly impact homeownership rates, suggesting other factors may influence residents' decisions to buy or rent.
Federal interest rates have played a crucial role in shaping homeownership trends in Cabbage Hill. When interest rates were historically low between 2013 and 2016 (0.09% to 0.4%), homeownership rates remained stable around 55%. As interest rates rose from 2017 (1%) to 2019 (2.16%), homeownership slightly decreased to 53%. However, when rates dropped again in 2020 (0.38%) and 2021 (0.08%), homeownership rebounded to 54%. This pattern indicates that lower interest rates generally encourage homeownership in the neighborhood, likely due to more affordable financing options.
Renter percentages in Cabbage Hill have shown a slight increase over time, rising from 43% in 2013 to 44% in 2022. This trend coincided with a gradual increase in average rent prices, from $945 in 2013 to $1,018 in 2022, representing a 7.7% increase over nine years. The population of Cabbage Hill also grew during this period, from 9,417 in 2013 to 11,178 in 2022, potentially contributing to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023, the average home price in Cabbage Hill reached $187,854, continuing the upward trend observed in previous years. This increase occurred despite a significant rise in federal interest rates to 5.02%. Moving into 2024, the average home price further increased to $201,350, while federal interest rates slightly rose to 5.33%. These figures indicate a robust housing market in Cabbage Hill, with home values continuing to appreciate even in the face of higher borrowing costs.
Based on the observed trends, average home prices in Cabbage Hill are likely to continue their upward trajectory over the next five years. If the current rate of appreciation persists, average home prices could potentially reach around $250,000 by 2029. Average rent prices are also expected to increase, albeit at a more moderate pace. Projecting the current trends, average rents could potentially rise to approximately $1,200 by 2029.
In conclusion, Cabbage Hill has demonstrated a resilient and growing real estate market over the past decade. The neighborhood has maintained a relatively stable homeownership rate despite significant increases in average home prices. Rent prices have shown more modest growth, while the renter population has slightly increased. The continued rise in home values, even in the face of higher interest rates, suggests strong demand for housing in this Lancaster neighborhood. As we move forward, both homeowners and renters in Cabbage Hill can expect to see continued appreciation in property values and modest increases in rental costs.
