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New Cumberland: Rising Home Values and Steady Ownership in Pennsylvania
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
New Cumberland, located in Pennsylvania, is a small community with a rich history dating back to the 18th century. The city has experienced notable shifts in homeownership rates and housing prices over the past decade. From 2013 to 2022, New Cumberland saw fluctuations in its ownership percentage, while average home prices and average rent prices generally trended upward.
The homeownership rate in New Cumberland showed some variation between 2013 and 2022. In 2013, the ownership percentage stood at 71%, but it decreased to 67% by 2015. From 2015 to 2022, the rate stabilized, ending at 69% in 2022. During this same period, average home prices in the borough experienced significant growth. In 2013, the average home price was $160,464, and by 2022, it had risen to $243,316, representing a substantial increase of 51.6% over nine years.
Federal interest rates have played a role in homeownership trends in New Cumberland. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate decreased slightly from 71% to 67%. As interest rates began to rise from 2017 to 2019 (1% to 2.16%), the homeownership rate stabilized at around 67-68%. Interestingly, despite the drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate increased to 69% and remained stable through 2022, even as interest rates climbed to 1.68%.
Renter percentages in New Cumberland showed an inverse relationship to homeownership rates. The percentage of renters increased from 26% in 2013 to 32% in 2017, then slightly decreased to 31% by 2022. Average rent prices demonstrated a general upward trend during this period. In 2013, the average rent was $893, rising to $1,071 in 2020, an increase of 19.9%. However, there was a slight decrease to $1,013 in 2022. The population growth from 7,288 in 2013 to 7,515 in 2022 may have contributed to the increased demand for rental properties and the subsequent rise in average rent prices.
In 2023 and 2024, New Cumberland continued to see growth in average home prices. The average home price reached $259,901 in 2023 and further increased to $270,101 in 2024, representing a 4.3% year-over-year increase. This growth occurred despite the Federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, which are significantly higher than the rates seen in the previous decade.
Looking ahead, based on the historical trends and current market conditions, it's projected that average home prices in New Cumberland will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the overall trend of rising housing costs. However, the rate of increase may moderate if homeownership becomes more attractive due to potential future changes in interest rates or local economic conditions.
In summary, New Cumberland has experienced a general trend of increasing average home prices and average rent prices over the past decade, with some fluctuations in homeownership rates. The recent years have seen continued growth in home values despite rising interest rates, indicating a robust local housing market. These trends suggest a dynamic real estate environment in New Cumberland, with potential opportunities and challenges for both homeowners and renters in the coming years.
