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Budlong Woods: Rising Home Values and Ownership Shifts in a Chicago Neighborhood
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
Budlong Woods, a neighborhood in Chicago, Illinois, has experienced significant changes in homeownership rates and housing prices over the past decade. The area has seen a general trend of decreasing homeownership, alongside fluctuating average home and rent prices. This analysis examines these trends and their implications for the community. The homeownership rate in Budlong Woods has shown a notable decline from 2013 to 2022. In 2013, 39% of residents owned their homes, but by 2020, this figure had dropped to 33%. However, there was a slight rebound to 40% in 2022. This trend correlates with average home prices in the area. In 2013, the average home price was $140,493, which steadily increased to $232,916 by 2022, representing a 65.8% increase over nine years. Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (0.11% to 0.40%), homeownership in Budlong Woods remained relatively stable at around 38-39%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates became more volatile, fluctuating between 33% and 43%.
The renter population in Budlong Woods has generally increased over time, from 61% in 2013 to 60% in 2022, with some fluctuations in between. This trend has been accompanied by rising average rent prices. In 2013, the average rent was $1,021, which increased to $1,300 by 2022, a 27.3% increase. The population growth from 8,930 in 2013 to 10,739 in 2022 likely contributed to the increased demand for rental properties and subsequent rise in rent prices.
Looking at the most recent data, the average home price in Budlong Woods was $230,926 in 2023 and increased to $234,510 in 2024. This represents a 1.55% increase in just one year. Simultaneously, federal interest rates rose from 5.02% in 2023 to 5.33% in 2024, potentially impacting homebuying decisions in the neighborhood.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Budlong Woods will continue to rise moderately, potentially reaching around $250,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,500 per month within the same timeframe.
In summary, Budlong Woods has experienced a general trend of decreasing homeownership and increasing rental occupancy over the past decade. This shift has been accompanied by significant increases in both average home prices and rent. Recent data shows continued growth in home values, despite rising interest rates. These trends suggest that Budlong Woods is likely to remain a dynamic and evolving neighborhood in the coming years, with potential for further increases in housing costs and a continued emphasis on rental properties.
