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Burnside's Housing Market: Home Values and Ownership Trends 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
Burnside, a neighborhood in Chicago, Illinois, has experienced significant shifts in its housing market and demographics over the past decade. From 2013 to 2022, Burnside saw fluctuations in homeownership rates, starting at 53% in 2013, declining to 47% by 2019, and rebounding to 54% in 2022. This trend coincided with substantial changes in average home prices, which rose from $67,743 in 2013 to $169,922 in 2022, representing a 151% increase over the period.
The relationship between federal interest rates and homeownership rates in Burnside shows some correlation. As interest rates remained low from 2013 to 2016, homeownership rates experienced a slight decline. However, when interest rates began to rise in 2017, reaching 1.83% by 2018, homeownership rates stabilized and then increased. This suggests that local factors may have had a more significant influence on homeownership decisions in Burnside than national interest rates during this period.
Renter percentages in Burnside showed an inverse relationship to homeownership rates. The proportion of renters increased from 47% in 2013 to a peak of 53% in 2019, before decreasing to 46% in 2022. Average rent prices generally trended upward during this period, rising from $845 in 2013 to $924 in 2022, an increase of about 9.3%. The population of Burnside decreased from 9,699 in 2013 to 8,830 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, the average home price in Burnside decreased to $153,738 in 2023 and further to $147,483 in 2024. This represents a significant drop of about 13% from the 2022 peak. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, which likely contributed to the cooling of the housing market.
Applying predictive models to forecast 5-year trends, average home prices in Burnside may continue to face downward pressure in the short term due to high interest rates. However, as the market adjusts, prices could stabilize and potentially see modest growth in the latter part of the 5-year period. Average rent prices are expected to continue their gradual upward trend, albeit at a slower pace, potentially reaching around $1,000 per month by the end of the forecast period.
In summary, Burnside has experienced significant volatility in its housing market over the past decade. The neighborhood saw a substantial increase in average home prices from 2013 to 2022, followed by a recent downturn. Homeownership rates have rebounded in recent years, while rental prices have shown steady growth. The interplay between interest rates, home prices, and ownership rates highlights the complex dynamics of the local real estate market. Moving forward, the neighborhood's housing market is likely to continue evolving in response to both local conditions and broader economic factors.
