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Berwyn's Rising Home Values and Stable Ownership in a Diverse Chicago Suburb
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
Berwyn, Illinois, a vibrant city located just outside of Chicago, has experienced notable shifts in its housing market over the past decade. This analysis explores the trends in homeownership, average home prices, and average rent prices in Berwyn, providing insights into the city's real estate dynamics. Homeownership in Berwyn has shown slight fluctuations over the years. In 2013, the homeownership rate stood at 60%, and it remained steady until 2015. However, from 2016 to 2021, there was a slight decrease to 58%. In 2022, the rate returned to 60%. These changes in homeownership coincide with significant movements in average home prices. In 2013, the average home price in Berwyn was $125,906. This figure rose steadily, reaching $275,239 by 2022, representing a substantial increase of 118.6% over nine years.
The relationship between federal interest rates and homeownership rates in Berwyn presents an interesting pattern. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership remained stable at 60%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership initially dipped to 58% but then recovered to 60% in 2022. This suggests that while lower interest rates generally encourage homeownership, other local factors may also play a significant role in Berwyn's housing market dynamics.
Regarding rental trends, the percentage of renters in Berwyn increased from 39% in 2013 to 42% in 2021, before slightly decreasing to 40% in 2022. Average rent prices have shown an overall upward trend, rising from $1,004 in 2013 to $1,033 in 2022, an increase of 2.9%. It's worth noting that rent prices reached a peak of $1,130 in 2021 before moderating in 2022. These trends suggest a growing demand for rental properties in Berwyn, possibly driven by factors such as population growth and changing housing preferences.
Looking at the most recent data, the average home price in Berwyn reached $275,367 in 2023 and further increased to $287,033 in 2024. This represents a 4.2% increase from 2023 to 2024. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, marking a significant increase from previous years. Despite these higher interest rates, the continued rise in home prices suggests ongoing demand in Berwyn's housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Berwyn will continue to rise, albeit at a more moderate pace. By 2029, average home prices could potentially reach around $325,000 to $340,000, assuming current economic conditions persist. For average rent prices, the forecast suggests a gradual increase, potentially reaching $1,100 to $1,150 per month by 2029.
In summary, Berwyn's housing market has demonstrated resilience and growth over the past decade. The city has maintained a relatively stable homeownership rate while experiencing significant appreciation in average home values. The rental market has also shown steady growth, reflecting the city's appeal to both homeowners and renters. As Berwyn continues to evolve, these housing trends will play a crucial role in shaping the city's future development and community dynamics.
