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Andersonville's Rising Home Values and Shifting Ownership Trends: A Swedish-American Neighborhood's Real Estate Evolution
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
Andersonville, a vibrant neighborhood in Chicago, Illinois, is known for its diverse community and rich Scandinavian heritage. Over the past decade, this area has experienced fluctuations in homeownership rates and property values, reflecting broader economic trends and local market dynamics. The homeownership rate in Andersonville has shown variability between 2013 and 2022. In 2013, 45% of residents owned their homes. This percentage peaked at 49% in 2019 before settling at 43% in 2022. Concurrently, average home prices have demonstrated a general upward trend. In 2013, the average home price was $359,139, rising to $465,689 by 2022, representing a substantial 29.7% increase over this period.
The relationship between federal interest rates and homeownership rates in Andersonville reveals some interesting patterns. For instance, when interest rates were at historic lows of 0.08% in 2021, homeownership stood at 46%. However, as rates climbed to 1.68% in 2022, homeownership dipped to 43%, suggesting a potential correlation between rising interest rates and decreased homeownership.
Renter percentages in Andersonville have fluctuated inversely to homeownership rates, ranging from 51% to 59% between 2013 and 2022. The average rent prices have shown a steady increase over this period. In 2013, the average rent was $1,280, rising to $1,492 by 2022, marking a 16.6% increase. This upward trend in rent prices occurred despite population fluctuations, with the neighborhood's population decreasing slightly from 5,615 in 2013 to 5,427 in 2022.
In 2023, the average home price in Andersonville reached $478,918, continuing the upward trend observed in previous years. This increase occurred despite a significant rise in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has further increased to $495,335, while federal interest rates have slightly risen to 5.33%. These figures indicate a resilient housing market in Andersonville, maintaining growth even in the face of higher borrowing costs.
Looking ahead, predictive models suggest a continued upward trajectory for both average home prices and rent in Andersonville over the next five years. Home prices are projected to potentially reach around $550,000 by 2029, representing an approximate 11% increase from 2024 levels. Average rent prices could climb to about $1,700 per month, an increase of roughly 14% from 2022 rates.
In summary, Andersonville has demonstrated a dynamic housing market characterized by fluctuating homeownership rates and steadily increasing property values and rent prices. Despite variations in federal interest rates and slight population changes, the neighborhood has maintained an upward trend in both home prices and rents. This resilience, coupled with projected continued growth, suggests Andersonville remains an attractive area for both homeowners and investors in the Chicago real estate market.
