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New Milford's Shifting Housing Landscape: Declining Ownership Amid Rising Rents
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 Milford, situated in Pennsylvania, has undergone notable demographic changes over the past decade. This small community has experienced fluctuations in its population, homeownership rates, and average rent prices. The town has observed a general decline in homeownership percentage, while average rent prices have demonstrated an upward trend.
The homeownership rate in New Milford has consistently decreased from 70% in 2013 to 52% in 2022. This decline in homeownership coincides with a period where average home price data is not available for most years, making it difficult to directly correlate these trends. However, the steady decrease in homeownership suggests that factors beyond just home prices may be influencing this trend.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. Despite these favorable borrowing conditions, New Milford's homeownership rate continued to decline. This indicates that local factors, such as employment opportunities or demographic changes, may have had a stronger influence on homeownership than national interest rates during this period.
The renter population in New Milford has increased correspondingly, from 30% in 2013 to 48% in 2022. This rise in renters has been accompanied by an increase in average rent prices. The average rent rose from $745 in 2013 to $918 in 2022, representing a 23% increase over nine years. This upward trend in rent prices, coupled with the growing renter population, indicates a shifting housing market in the borough.
In 2023 and 2024, significant changes in the housing market are observed. The average home price in New Milford for 2024 is $212,560. This figure provides a clear benchmark for the current housing market value in the area. Concurrently, federal interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the near-zero rates of the early 2020s.
Looking ahead, continued changes in New Milford's housing market can be anticipated. Based on the observed trends, it is projected that average rent prices could increase by approximately 3-5% annually over the next five years, potentially reaching around $1,065 to $1,170 by 2029. For average home prices, assuming a modest annual appreciation of 2-3%, values could potentially rise to around $234,000 to $246,000 by 2029.
In summary, New Milford has experienced a significant shift from homeownership to renting over the past decade, with rising rent prices accompanying this trend. The recent data on home prices and interest rates suggests a changing landscape that could further impact these housing dynamics. These trends underscore the evolving nature of the housing market in this Pennsylvania borough, reflecting broader economic and demographic changes.
