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Buffalo Grove: Rising Home Values and Stable Ownership in a Family-Friendly Suburban Village
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
Buffalo Grove, located in Illinois, is a suburban community known for its excellent schools and high quality of life. The city has experienced fluctuations in homeownership rates and housing prices over the past decade, with a general trend towards increased homeownership and rising average home prices.
The homeownership rate in Buffalo Grove has shown a slight increase over recent years. In 2013, the homeownership rate was 81%, and by 2022, it had risen to 82%. This upward trend in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $240,064, and by 2022, it had risen to $360,448, representing a 50% increase over this period.
Federal interest rates have played a role in influencing homeownership rates in Buffalo Grove. From 2013 to 2020, interest rates remained relatively low, ranging from 0.11% to 2.16%. This period of low interest rates corresponded with relatively stable homeownership rates, fluctuating between 78% and 81%. As interest rates began to rise more sharply in 2022 to 1.68%, the homeownership rate increased to 82%, possibly due to residents securing mortgages before rates climbed further.
The rental market in Buffalo Grove has shown interesting trends as well. The percentage of renters decreased slightly from 22% in 2019 to 18% in 2022. Despite this decrease in the renter population, average rent prices have continued to rise. In 2013, the average rent was $1,677, and by 2022, it had increased to $1,795, representing a 7% increase over this period. This trend suggests a tightening rental market, with fewer available units potentially driving up prices.
In 2023, the average home price in Buffalo Grove reached $377,919, with federal interest rates climbing to 5.02%. As of 2024, the average home price has further increased to $399,279, while interest rates have risen slightly to 5.33%. These figures indicate a continuing trend of rising home values despite higher borrowing costs.
Looking ahead, based on the observed trends, we can expect average home prices in Buffalo Grove to continue rising over the next five years, potentially reaching around $450,000 by 2029. Average rent prices are also likely to increase, potentially surpassing $2,000 per month within the same timeframe. However, the rate of increase for both home prices and rents may moderate if interest rates remain elevated, potentially slowing demand.
In summary, Buffalo Grove has experienced a trend towards increased homeownership and rising housing costs over the past decade. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with low interest rates generally supporting homeownership and price appreciation. The rental market has seen fewer renters but rising prices, indicating a competitive landscape. As the city moves forward, residents and potential homebuyers should be prepared for a continuing trend of rising housing costs, albeit potentially at a more moderate pace.
