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Rising Home Values and Ownership in New Bern: A Historic City's Housing Transformation
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 Bern, a charming city in North Carolina, has experienced notable shifts in its housing market over the past decade. Located at the confluence of the Neuse and Trent rivers, this historic city has seen a gradual increase in homeownership rates, coupled with significant changes in average home prices and rent costs. The city's housing dynamics reflect a complex interplay of economic factors and demographic trends.
From 2013 to 2022, New Bern witnessed a steady rise in homeownership rates, increasing from 53% to 61%. This upward trend coincided with fluctuations in average home prices. In 2013, the average home price was $146,615, which initially declined to $142,741 in 2015 before embarking on a substantial upward trajectory. By 2022, the average home price had surged to $238,082, representing a remarkable 62.4% increase over this period. This trend suggests a growing preference for homeownership despite rising prices, possibly driven by factors such as economic growth and perceived investment value in real estate.
The relationship between federal interest rates and homeownership rates in New Bern shows an interesting pattern. From 2013 to 2020, interest rates remained relatively low, hovering between 0.09% and 2.16%. During this period, homeownership rates increased gradually from 53% to 56%. The low interest rate environment likely contributed to this trend by making mortgages more affordable. However, the most significant jump in homeownership occurred between 2020 and 2022, rising from 56% to 61%, coinciding with a sharp increase in interest rates from 0.38% to 1.68%. This suggests that other factors, such as changing housing preferences or local economic conditions, may have played a more significant role in driving homeownership during this period.
Renter percentages in New Bern showed a corresponding decline from 47% in 2013 to 39% in 2022. Despite this decrease, average rent prices experienced an overall upward trend. In 2013, the average rent was $946, which increased to $1,001 by 2022, representing a 5.8% rise. The city's population grew from 32,786 in 2013 to 35,305 in 2022, potentially contributing to the upward pressure on rent prices despite the declining percentage of renters. This suggests a tightening rental market, with fewer available units relative to demand.
As of 2024, the average home price in New Bern has reached $271,429, a significant increase from the 2022 figure. This represents a 14% rise over two years, indicating a continued strong housing market. The current federal interest rate stands at 5.33%, a substantial increase from the 1.68% in 2022. This higher interest rate environment may pose challenges for potential homebuyers, potentially affecting future homeownership rates.
Looking ahead, predictive models suggest that average home prices in New Bern are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the overall appreciation of the local real estate market. However, the rate of increase may moderate if homeownership becomes less affordable due to higher mortgage costs.
In summary, New Bern's housing market has demonstrated resilience and growth, with increasing homeownership rates and rising property values. The interplay between interest rates, population growth, and housing preferences has shaped a dynamic market environment. While homeownership has become more prevalent, the rental market remains significant, with both sectors experiencing price appreciation. As the city continues to evolve, these trends will likely play a crucial role in shaping its housing landscape in the coming years.
