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Archer Heights: Rising Home Values and Ownership Trends in a Resilient Chicago Neighborhood
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
Archer Heights, a Chicago Neighborhood, Experiences Significant Housing Market Shifts Archer Heights, a vibrant neighborhood in Chicago, Illinois, has undergone substantial changes in its housing market and demographic composition over the past decade. The community has experienced fluctuations in homeownership rates, with a general trend towards increased owner-occupied housing in recent years. Concurrently, average home prices and rent prices have shown notable changes, reflecting broader economic trends and local market dynamics.
Homeownership and Property Values on the Rise The homeownership rate in Archer Heights has shown a gradual increase over the years, rising from 36% in 2013 to 40% in 2022. This upward trend in homeownership coincides with substantial growth in average home prices. In 2013, the average home price in the neighborhood was $124,576. By 2022, this figure had more than doubled to $264,862, representing a significant appreciation in property values. The most dramatic increase occurred between 2020 and 2021, when average home prices jumped from $218,248 to $247,645, a 13.5% increase in just one year.
Impact of Federal Interest Rates on Homeownership Federal interest rates have played a crucial role in shaping homeownership trends in Archer Heights. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1%. During this time, homeownership rates remained stable at 36-37%. As interest rates began to rise gradually from 2016 onwards, reaching 1.68% in 2022, homeownership in Archer Heights actually increased to 40%. This suggests that other local factors, such as improved economic conditions or neighborhood development, may have outweighed the impact of rising interest rates on homeownership decisions.
Rental Market Dynamics The rental market in Archer Heights has also experienced notable changes. The percentage of renter-occupied housing has decreased slightly, from 64% in 2013 to 60% in 2022. Despite this decrease in the renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $979 per month. By 2022, it had increased to $983, with fluctuations in between. The highest average rent was recorded in 2021 at $1,053 per month. These changes in rent prices occurred against a backdrop of fluctuating population, which peaked at 63,836 in 2014 and decreased to 56,870 by 2022.
Current Housing Market and Future Projections As of 2024, the average home price in Archer Heights stands at $271,269, showing continued appreciation from the 2023 value of $261,766. This represents a 3.6% increase in just one year. The current federal interest rate in 2024 is 5.33%, a significant rise from the 5.02% rate in 2023. These higher interest rates may impact future homebuying activity in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Archer Heights are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase moderately, driven by ongoing demand for rental properties in the area and overall inflationary pressures.
Conclusion: A Resilient and Growing Housing Market In summary, Archer Heights has experienced a notable increase in homeownership rates and substantial growth in average home prices over the past decade. The rental market has seen a slight decrease in the proportion of renters, but average rent prices have remained relatively stable with some fluctuations. The neighborhood's housing market has demonstrated resilience and growth, even in the face of changing economic conditions and interest rates. As Archer Heights continues to evolve, it is likely to remain an attractive area for both homeowners and renters, with ongoing appreciation in property values and a dynamic housing market.
