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Ashburn, Chicago: Rising Home Values Amidst Declining Rent Prices
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Ashburn, a Chicago neighborhood near Midway International Airport, has shown remarkable stability in its housing market from 2013 to 2022. Despite significant increases in average home prices, the area has maintained high homeownership rates. The homeownership rate fluctuated between 83% and 88% during this period, with only a slight decrease from 88% in 2013 to 87% in 2022. This stability is particularly noteworthy given the substantial rise in average home prices, which increased by 128% from $102,430 in 2013 to $233,803 in 2022.
The relationship between federal interest rates and homeownership rates in Ashburn reveals an interesting pattern. In 2013, when interest rates were at a low 0.11%, the homeownership rate peaked at 88%. As interest rates gradually increased to 1.68% in 2022, homeownership only slightly decreased to 87%. This suggests that while interest rates may influence homeownership decisions, other factors such as neighborhood desirability and local economic conditions also play significant roles in Ashburn.
The rental market in Ashburn has shown unique dynamics. Renter percentages increased slightly from 11% in 2013 to 13% in 2022. However, average rent prices decreased from $1,695 in 2013 to $1,463 in 2022, a 13.7% reduction. This trend is particularly interesting given the overall increase in home prices during the same period. The population decrease from 14,540 in 2013 to 13,363 in 2022 may have influenced the rental market, potentially creating a more competitive environment for landlords and benefiting renters with lower prices.
Recent data shows that the average home price in Ashburn for 2023 was $227,892, a slight decrease from 2022. However, in 2024, the average home price increased to $235,546, indicating a recovery in the housing market. This aligns with the current federal interest rate of 5.33% in 2024, which, despite being higher than in previous years, hasn't significantly dampened home values in the neighborhood.
Predictive models forecast that average home prices in Ashburn will continue to rise over the next five years, albeit at a more moderate pace. Based on historical data and current economic indicators, average home prices are projected to reach approximately $260,000 to $275,000 by 2029. For average rent prices, a gradual increase is expected, potentially reaching $1,700 to $1,800 per month by 2029, assuming economic stability and continued demand for rental properties in the area.
In conclusion, Ashburn has demonstrated remarkable resilience in its housing market. The neighborhood has maintained high homeownership rates despite significant increases in average home prices. The rental market has shown interesting dynamics, with decreasing average rents even as the renter population slightly increased. Moving forward, Ashburn is likely to continue seeing appreciation in both home values and rent prices, reflecting its enduring appeal as a residential area in Chicago.
