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Chesterton, Indiana: Rising Home Values and Steady Ownership Rates Near Indiana Dunes
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
Chesterton, Indiana, is a charming town located in the northwestern part of the state, known for its proximity to the Indiana Dunes National Park. Over the past decade, Chesterton has experienced notable changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Chesterton has shown some fluctuation but has remained relatively stable over the years. In 2013, the homeownership rate stood at 79%, gradually decreasing to 74% by 2019. However, there has been a slight uptick in recent years, with the rate rising to 77% in 2022. This trend coincides with significant changes in average home prices. In 2013, the average home price in Chesterton was $180,684. Over the next decade, there was a substantial increase, with the average home price reaching $287,566 in 2022, representing a 59% rise over this period.
The relationship between federal interest rates and homeownership rates in Chesterton follows a general trend observed nationally. When interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates in Chesterton remained relatively high, between 77% and 79%. As interest rates began to rise from 2017 onwards, there was a slight decline in homeownership rates, dropping to 74% in 2017. However, the town has shown resilience, with homeownership rates rebounding to 77% by 2022, despite rising interest rates.
Renter percentages and average rent prices in Chesterton have also shown interesting trends. The percentage of renters increased from 21% in 2013 to 26% in 2019, before slightly decreasing to 23% in 2022. Average rent prices, however, have not followed a linear path. In 2013, the average rent was $1,134, peaking at $1,145 in 2014. Interestingly, despite the growing population, average rent prices decreased to $968 in 2018 before rising again to $1,088 in 2021. The most recent data for 2022 shows a notable drop to $916, which could be attributed to various local factors or market adjustments.
Looking at the most recent data, the average home price in Chesterton continued its upward trajectory, reaching $298,232 in 2023 and further increasing to $304,527 in 2024. This represents a 5.9% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest levels seen since 2007.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Chesterton to continue their upward trajectory, albeit potentially at a slower rate due to higher interest rates. Based on the historical data and current economic conditions, average home prices could potentially reach around $350,000 to $375,000 by 2029. For average rent prices, the forecast is less clear due to recent fluctuations. However, if the town's population growth continues and housing demand remains strong, we might see a gradual increase in average rent prices, potentially reaching $1,200 to $1,300 per month by 2029.
In summary, Chesterton has demonstrated a resilient housing market with a strong preference for homeownership. Despite rising home prices and fluctuating interest rates, the town has maintained a relatively high homeownership rate. The rental market has shown more volatility, with recent decreases in average rent prices despite earlier increases. As Chesterton continues to grow and evolve, these housing market dynamics will play a crucial role in shaping the town's future development and community composition.
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