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Northern Cambria's Housing Market: Fluctuating Home Values and Ownership Rates in a Small Pennsylvania Borough
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
Northern Cambria, located in Pennsylvania, is a small community with a rich history rooted in coal mining and railroad development. As of 2022, the city had a population of 4,245 spread across 3.09 square miles. Over the past decade, Northern Cambria has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Northern Cambria has shown some fluctuation but has generally remained high, ranging from 72% to 81% between 2013 and 2022. In 2013, the ownership rate stood at 76%, peaked at 81% in 2015, and settled at 74% in 2022. Concurrently, average home prices in the area have seen significant growth. From 2016 to 2022, average home prices increased from $76,193 to $104,882, representing a substantial 37.6% rise over six years.
The relationship between federal interest rates and homeownership rates in Northern Cambria aligns with typical patterns. As interest rates remained low from 2013 to 2016, hovering around 0.1%, homeownership rates in the borough stayed relatively high, reaching 81% in 2015. The gradual increase in interest rates from 2017 to 2019 coincided with a slight decline in homeownership, dropping to 72% by 2019. However, the ultra-low interest rates in 2020 and 2021 (0.38% and 0.08% respectively) corresponded with a rebound in homeownership to 75% by 2021.
Renter percentages in Northern Cambria have fluctuated inversely to homeownership rates, ranging from 19% to 28% between 2013 and 2022. The average rent prices have shown volatility over this period. Starting at $592 in 2013, rent prices peaked at $690 in 2018 before declining to $499 in 2022, representing a 27.7% decrease from the peak. This trend may be influenced by the city's declining population, which fell from 4,864 in 2010 to 4,245 in 2022, potentially reducing demand for rental properties.
In 2023 and 2024, Northern Cambria experienced a significant shift in the housing market. Average home prices dropped from $104,882 in 2022 to $91,965 in 2023, and further to $78,431 in 2024, marking a 25.2% decrease over two years. This decline coincided with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, likely impacting home affordability and buyer demand.
Looking ahead, predictive models suggest a potential stabilization in home prices over the next five years, with modest growth possible if economic conditions improve and interest rates moderate. Rent prices may see a gradual increase as the market adjusts to the recent declines, potentially reaching levels closer to the 2018 peak by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, Northern Cambria has maintained a high rate of homeownership despite fluctuations in the housing market. The recent sharp decline in home prices, coupled with rising interest rates, marks a significant shift in the local real estate landscape. As the community navigates these changes, the interplay between homeownership rates, housing prices, and rental market dynamics will continue to shape Northern Cambria's residential profile in the coming years.
