Loading Content...
Berkeley, Illinois: Home Values Double Amidst Unusual Rent Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Berkeley, Illinois, a small suburban community in Cook County, has experienced significant changes in its housing market over the past decade. With a population of 5,107 as of 2022, this quaint village has seen steady growth accompanied by notable shifts in homeownership rates and housing prices. From 2015 to 2022, the percentage of owner-occupied housing units increased from 75% to 86%, while average home prices more than doubled during this period.
The relationship between ownership percentage and average home prices in Berkeley shows a strong positive correlation. As homeownership rates rose from 75% in 2015 to 86% in 2022, average home prices increased from $138,761 to $247,638, representing a remarkable 78% increase in average home values. The most significant jump in homeownership occurred between 2020 and 2021, rising from 85% to 89%, coinciding with a substantial increase in average home prices from $202,025 to $225,733.
Federal interest rates have played a crucial role in shaping homeownership trends in Berkeley. The period of historically low interest rates from 2010 to 2021, ranging from 0.08% to 0.40%, corresponded with the steady increase in homeownership rates. This low-interest environment made mortgages more affordable, encouraging more residents to purchase homes. The sharp rise in interest rates to 1.68% in 2022 and 5.02% in 2023 may have contributed to the slight dip in homeownership from 89% in 2021 to 86% in 2022.
Renter percentages in Berkeley have shown an inverse relationship to homeownership rates, decreasing from 25% in 2015 to 14% in 2022. Average rent prices have not followed a consistent trend during this period. The average rent peaked at $1,188 in 2017 when the renter percentage was 21%, then decreased to $941 in 2019 before rising again to $1,060 in 2022. This fluctuation in rent prices, despite the decreasing renter population, may be attributed to factors such as housing quality improvements or broader market pressures in the surrounding areas.
In 2023 and 2024, Berkeley continued to see growth in average home prices, reaching $256,280 in 2023 and further increasing to $269,485 in 2024. This represents an 8.8% increase from 2022 to 2024, despite the federal interest rate rising to 5.33% in 2024. This sustained growth in home prices, even in a high-interest rate environment, suggests strong demand for housing in the area and a robust local real estate market.
Looking ahead, predictive models forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $300,000 by 2029. Rent prices are also projected to increase, albeit at a slower pace, possibly reaching approximately $1,200 per month in the same timeframe.
In summary, Berkeley has experienced a significant shift towards homeownership over the past decade, with a corresponding surge in average home prices. The community has demonstrated resilience in its housing market, maintaining growth even in the face of rising interest rates. The inverse relationship between homeownership and renter percentages, coupled with the fluctuating but generally increasing rent prices, indicates a dynamic and evolving housing landscape in this Illinois village. As Berkeley continues to grow, these trends suggest a robust and desirable real estate market with potential for further appreciation in both home values and rental rates.
