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Average Home Values and Ownership in Batavia, Illinois: A Resilient Suburban Market
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
Batavia, Illinois, a vibrant city located approximately 40 miles west of Chicago, offers a blend of suburban charm and historical significance. Known for its rich history and beautiful Fox River setting, Batavia has experienced interesting shifts in its housing market over the past decade. The city has maintained a consistently high homeownership rate, while average home prices and average rent have shown notable increases.
Homeownership in Batavia has remained relatively stable, with a slight fluctuation over the years. In 2013, the homeownership rate stood at 79%, and by 2022, it held steady at 79%. During this period, average home prices in Batavia demonstrated a significant upward trend. In 2013, the average home price was $244,655, and by 2022, it had risen to $377,836, representing a substantial increase of 54.4% over nine years. This trend suggests that despite rising home prices, Batavia residents have maintained a strong preference for homeownership.
The relationship between federal interest rates and homeownership rates in Batavia presents an interesting dynamic. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates in Batavia fluctuated slightly but remained high, between 77% and 80%. The stability in homeownership rates, even as average home prices increased, may be attributed to these low interest rates, which likely made mortgage financing more accessible to potential buyers.
Renter percentages in Batavia have shown minimal fluctuation, ranging from 19% to 21% between 2013 and 2022. Interestingly, average rent prices have steadily increased during this period. In 2013, the average rent was $1,335, and by 2022, it had risen to $1,478, marking a 10.7% increase. This upward trend in rent prices, coupled with the relatively stable renter percentage, suggests that Batavia's rental market has remained competitive, potentially influenced by factors such as job market stability and the city's desirable location.
Looking at the most recent data, the average home price in Batavia reached $395,452 in 2023 and further increased to $415,470 in 2024. This represents a significant jump of 9.9% from 2022 to 2024. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, marking the highest levels in over a decade. Despite these higher interest rates, which typically discourage home buying, Batavia's housing market has continued to see price appreciation, indicating strong demand and possibly limited housing supply.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Batavia will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $475,000 to $500,000, assuming a moderate annual growth rate of 3-4%. Average rent prices are also expected to increase, potentially reaching around $1,700 to $1,800 per month by 2029, based on historical trends and accounting for inflation.
In summary, Batavia's housing market has demonstrated resilience and growth over the past decade. The city has maintained a high homeownership rate despite rising home prices, likely supported by historically low interest rates until recent years. The rental market has seen steady increases in average rent, reflecting the city's desirability. Moving forward, while higher interest rates may pose challenges, Batavia's strong housing demand and limited supply are likely to continue supporting price growth in both the ownership and rental markets.
