area guide·

New Castle, DE: What to Know About the Historic Town

A look at New Castle, Delaware: its colonial history, the historic district, annual events, getting around, schools and the housing market.

A brick-lined street in historic New Castle, Delaware
Photo: David Wilson, CC BY 2.0, via Wikimedia Commons

Where New Castle is

New Castle is a city in New Castle County, Delaware. It covers about 3.5 square miles and had 5,551 residents at the 2020 census.

The Old New Castle Court House in New Castle, Delaware (historic photograph)
The Old New Castle Court House in New Castle, Delaware (historic photograph). Photo: W. S. Stewart (Historic American Buildings Survey), public domain, via Wikimedia Commons.

History

New Castle was established in 1651 by the Dutch West India Company and renamed New Castle by the English in 1664, when it became the capital of the Delaware Colony. William Penn landed here on October 27, 1682. The town was the seat of colonial government until the capital moved to Dover in 1777.

The historic district

The New Castle Historic District covers about four blocks and roughly 500 buildings built between 1700 and 1940. It was declared a National Historic Landmark in 1967. Sites include the Amstel House, the New Castle Court House Museum, the Read House and Garden, and Immanuel Episcopal Church on the Green.

Through the year

Since 1927 the town has held annual historic home tours on the third Saturday of May, and it holds a Separation Day celebration each June.

Getting around

U.S. Routes 13 and 40 serve the city, along with Delaware Routes 9, 141 and 273. Interstate 295 passes north of the city with access by Route 9, and Wilmington Airport is nearby.

The housing market

In Q4 2025, the most recent period in the closed-sale data Foraker uses, the median sale price in New Castle was $290,000 and the average sale price was $300,756, across 30 closed sales. These figures come from Bright MLS closed-sale data. They describe homes that sold in that period, not homes for sale today.

Schools

New Castle is served by the Colonial School District, which operates William Penn High School. Buyers can look up the district and its schools directly before choosing a home.

William Penn High School in the Colonial School District
William Penn High School in the Colonial School District. Photo: Mojo Hand, CC BY-SA 4.0, via Wikimedia Commons.

Talk to us about buying or selling in New Castle

If you are thinking about buying or selling here, the Foraker team would be glad to talk it through. You can read the New Castle market report or browse Foraker's current listings at forakerrealty.com.

Delaware