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Arlington Heights Home Values and Ownership: A Decade of Changes in a Vibrant Illinois Village
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
Arlington Heights, a vibrant village in Illinois, is known for its excellent schools, bustling downtown, and proximity to Chicago. Over the past decade, this community has experienced notable fluctuations in homeownership rates and housing prices. The overall trend shows a slight decrease in homeownership, while average home prices and average rent have generally increased.
The relationship between homeownership percentages and average home prices in Arlington Heights has been complex. In 2013, the homeownership rate was 74%, with an average home price of $264,745. As average home prices rose to $316,544 by 2016, homeownership increased to 77%. However, this trend reversed in subsequent years. By 2018, despite average home prices reaching $333,376, homeownership dropped to 70%. This suggests that rising home prices may have contributed to decreased affordability for potential buyers. In 2022, with average home prices at $385,687, homeownership stood at 72%, indicating a slight recovery but still below earlier levels.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were low (0.11% to 0.40%), homeownership in Arlington Heights increased. However, as interest rates rose to 1.83% in 2018, homeownership decreased to 70%. The relationship isn't always direct, as seen in 2020 when interest rates dropped to 0.38%, but homeownership only slightly increased to 73%. This suggests that while interest rates influence homeownership, other factors such as local economic conditions and housing supply also play significant roles.
Renter percentages and average rent prices have shown an interesting correlation. In 2013, with 26% of residents renting, the average rent was $1,208. As the renter percentage increased to 30% in 2018, average rent rose significantly to $1,482. However, by 2022, despite a slight decrease in renters to 28%, average rent continued to climb to $1,592. This trend suggests that even with fluctuations in the renter population, demand for rental properties remained strong, driving up prices. The population has remained relatively stable during this period, ranging from about 71,825 to 77,259, indicating that changes in rental demand were not primarily driven by population growth.
In 2023, average home prices in Arlington Heights reached $402,410, with federal interest rates at 5.02%. Moving into 2024, average home prices have further increased to $425,157, while interest rates have risen slightly to 5.33%. These figures represent the current market conditions, reflecting continued growth in property values despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Arlington Heights may continue to rise over the next five years, potentially reaching around $475,000 by 2029. Average rent prices are also expected to increase, possibly exceeding $1,800 per month within the same timeframe. These projections assume continued economic stability and demand for housing in the area.
In summary, Arlington Heights has experienced a gradual shift towards slightly lower homeownership rates over the past decade, coupled with significant increases in both average home prices and average rent. The interplay between interest rates, housing affordability, and rental demand has shaped these trends. As the community moves forward, balancing housing affordability with property value appreciation will likely remain a key challenge for local policymakers and residents alike.
