The relationship between federal interest rates and homeownership rates in Cambridge Springs appears to follow general economic principles. For instance, the period from 2013 to 2020 saw relatively low federal interest rates, ranging from 0.09% to 2.16%. During this time, homeownership rates remained stable at around 62-63%. The slight increase in homeownership to 64% in 2022 coincided with a moderate rise in interest rates to 1.68%, which may have prompted some renters to purchase homes before rates increased further.

Renter percentages in Cambridge Springs have also remained relatively stable, complementing the homeownership trends. The percentage of renters stood at 37% in 2013 and 2014, increased slightly to 38% from 2015 to 2018, and then returned to 37% in 2019 and 2020. In 2022, the renter percentage decreased to 36%, corresponding with the increase in homeownership. Average rent prices have shown some fluctuation over the years. In 2013, the average rent was $585, which decreased to $570 by 2015. There was a notable increase to $601 in 2017, followed by a drop to $570 in 2018. By 2022, the average rent had decreased to $554, representing a 5.3% decrease from 2013 levels.

Looking at the most recent data, the average home price in Cambridge Springs reached $176,854 in 2023, showing continued growth in the housing market. However, in 2024, there was a slight decrease to $163,890. This recent dip coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to a cooling of the housing market.

Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Cambridge Springs may experience moderate growth, albeit at a slower pace than seen in previous years due to higher interest rates. Average rent prices are expected to stabilize and potentially see slight increases as the rental market adjusts to changes in homeownership rates and overall housing demand.

In summary, Cambridge Springs has maintained a relatively stable housing market with consistent homeownership rates and gradually increasing home prices over the past decade. The recent rise in interest rates may lead to a period of market adjustment, potentially slowing home price growth and affecting the balance between ownership and renting in the coming years. The city's small-town charm and historical significance continue to make it an attractive location for both homeowners and renters alike.