Loading Content...
Addison, IL: Rising Home Values Amidst Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Addison, located in Illinois, is a suburban community known for its diverse population and proximity to Chicago. Over the past decade, the city has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
Homeownership in Addison has shown a gradual decline since 2013, dropping from 69% to 67% in 2022. This trend coincides with a significant increase in average home prices, which rose from $223,185 in 2010 to $313,911 in 2022, representing a 40.6% increase over 12 years. The inverse relationship between homeownership rates and home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Addison. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which typically encourage home buying. However, Addison's homeownership rate still declined during this period, indicating that other factors, such as rising home prices, may have outweighed the benefits of low interest rates. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate stabilized around 66-67%, suggesting a potential correlation between higher interest rates and steadier homeownership levels.
The rental market in Addison has shown complementary trends to homeownership. The percentage of renters increased from 30% in 2013 to 33% in 2022. This rise in renters coincided with an increase in average rent prices, which grew from $1,165 in 2013 to $1,216 in 2022, an increase of 4.4%. The population of Addison peaked in 2015 at 42,378 and has since decreased to 38,943 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, Addison experienced further increases in average home prices, reaching $321,741 in 2023 and $339,770 in 2024. This represents a 8.2% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability and market dynamics.
Looking ahead, predictive models suggest that average home prices in Addison may continue to rise over the next five years, potentially reaching around $380,000 by 2029 if current trends persist. Average rent prices are also expected to increase, potentially surpassing $1,400 per month within the same timeframe. However, these projections are subject to various economic factors and market conditions.
In summary, Addison has experienced a gradual shift towards renting, with homeownership rates declining as both home prices and rent costs have increased. The interplay between federal interest rates, local economic conditions, and population changes has shaped these trends. As the community moves forward, balancing housing affordability with market dynamics will likely remain a key challenge for residents and policymakers alike.
