Newburgh market analysis: Appreciation trends for 2022, by Sandra Cotthaus.

Newburgh Market Analysis: Appreciation Trends for 2022

By Sandra Cotthaus

New York is the largest metro area in the United States and includes the island of Manhattan, an eight county area, west long Island and Staten Island. It is the fourth largest in the world after Tokyo, Mexico City and Sao Paulo, Brazil. It is among the richest and one of the most complex places to live in America.

One of the cities that we’re going to be looking at in this article in terms of the real estate performance is Newburg.

Newburg is a mid-sized city that is located in the state of New York. It has a population of 28,856 people and 14 neighborhoods. It is the 52nd largest community in New York.

As a visitor of the city, one thing that you will notice quickly is the fact that many of the homes have a historic look to them as they were built pre-world war II. This makes the city has a unique appeal making it one of the more historic cities.

In terms of job profiling, Newburgh comprises of both blue and white collar jobs. But in overall, the city is made up of more service providers, sales and office workers and professionals. Many people living in Newburgh mostly work in offices and administrative support (12.64), sales jobs (10.47%) and in health care support services (8.46%).

For a city the size of Newburgh, it makes a lot of sense why there are so many people taking public transportation.

The Per-capita income of residents of Newburgh as of 2018 was $22,425 which is quite low compared to the state and relative to the national per capita levels. This equates to an annual $89,700 income for a family of four. When it comes to diversity of the races in Newburgh, you find that it is a city that’s extremely ethnically-diverse. Many people in Newburgh describes themselves as belonging to a variety of racial and ethnic groups. The most prevalent group in the city are the people of Hispanic or Latino descent who make up 53.56 percent of the total population. Many people in Newburgh report their race to be white followed by the African Americans.

NEWBURG’S REAL ESTATE PROFILE

The city of Newburgh has about 10,268 houses or apartments with a median cost of $249,750 according to the latest statistics from Redfin. The company also reports that real estate prices in the city have gone up 11.0 percent compared to the same period last year (March 2022). The most common housing type in Newburgh are the duplexes which account for

40.24% of the city’s housing units. There are other types of housing units in the city including the single-family detached homes that account for 27.56 percent, large apartment complexes or the high rise apartments that account for 24.77 percent and a few row houses and other attached homes which also account for 6.94 percent. This combination of houses in a single city makes Newburgh one of the most compact and walkable city which in many cases translates to a lively downtown.

A characteristic of the city is that it is dominated by renter-occupied one, two or no bedroom apartments that account for 68.92 percent of the city’s residential rentals.

Over half of the city’s housing stock was built before the 40s making the city’s housing the oldest overall in the country, but if you are not the person who is attracted by historic features and look of a place, you’ll be satisfied to know that the city has a range of ages of homes. About 14.50 percent of homes in Newburgh were built between 1970 to1999.

The only issue Newburgh market seems to be suffering from is vacancy rates. Fully 13.98 percent of the housing stock in Newburgh is classified as vacant. If this is not addressed, Newburgh homes and apartments can be a drag in the real estate market which might end up holding the real estate prices below the potential level of the market.

APPRECIATION RATES OF HOMES IN NEWBURGH

Notably, the appreciation rates for homes in Newburgh have been below the national average for the last decade. In fact the average annual home appreciation rate in Newburgh during the period has been just 3.13 percent which is lower than 80 percent of the US communities.

According to NeighborhoodScout, for the last 12 months, Newburgh market has appreciated at 18.55 percent slightly above the national average. In the latest quarter, the city’s appreciation rate has been 7.26 percent which translates to an annualized rate of 32.36 percent.

When comparing Newburgh to the rest of New York, the latest annual appreciation rate is higher than 50 percent of other cities and towns in New York.