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Average Home Values and Ownership: Wood Dale's Shifting Housing Landscape
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
Wood Dale, Illinois, a suburban city in DuPage County located approximately 20 miles northwest of Chicago, has experienced significant changes in its housing landscape over the past decade. With a population of 14,235 in 2022, this small community has seen a gradual decrease in homeownership rates, coupled with fluctuations in average home prices and rent costs, reflecting broader economic trends and local market dynamics.
The homeownership rate in Wood Dale has shown a steady decline from 2013 to 2022. In 2013, 80% of residents owned their homes, but by 2022, this figure had dropped to 72%. This decline in homeownership occurred despite a general upward trend in average home prices. The average home price in Wood Dale rose from $181,383 in 2013 to $292,497 in 2022, representing a significant increase of 61% over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents, potentially contributing to the shift towards renting.
Federal interest rates have played a role in shaping homeownership trends in Wood Dale. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 80-82%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, the homeownership rate in Wood Dale started to decline more rapidly. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates decreased, the percentage of renters in Wood Dale increased from 20% in 2013 to 28% in 2022. During this period, average rent prices fluctuated but showed an overall upward trend. The average rent rose from $1,417 in 2013 to $1,368 in 2022, with peaks of $1,592 in 2015 and $1,557 in 2021. The increase in the renter population, combined with rising rent prices, suggests a growing demand for rental properties in the city, possibly driven by those priced out of the homeownership market.
In 2023 and 2024, Wood Dale's housing market continued to evolve. The average home price reached $300,742 in 2023 and further increased to $316,529 in 2024, representing a 5.2% year-over-year growth. This rise occurred despite the federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to slow home price growth. These figures indicate a robust local housing market that has shown resilience in the face of higher borrowing costs.
Looking ahead, predictive models suggest that Wood Dale's housing market will continue to see growth in both home prices and rents over the next five years. Average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $370,000 by 2029. Average rent prices are expected to follow a similar trajectory, with annual increases of 2-3%, potentially reaching $1,600 per month by 2029. These projections assume relative economic stability and continued demand for housing in the area.
In summary, Wood Dale has experienced a significant shift in its housing landscape over the past decade, characterized by decreasing homeownership rates, rising home prices, and an increasing renter population. Despite higher interest rates in recent years, the local housing market has shown resilience, with continued price appreciation. As the city moves forward, it will likely face the challenge of balancing housing affordability with market growth, particularly as the renter population continues to expand.
