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Cicero, Illinois: Rising Home Values and Ownership Rates in Chicago's Vibrant Neighbor
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Cicero, Illinois, a vibrant town located just west of Chicago, has experienced significant shifts in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices in Cicero, revealing a dynamic real estate landscape. From 2013 to 2022, Cicero saw a notable increase in homeownership rates, rising from 49% to 56%. This trend coincided with a substantial growth in average home prices, which more than doubled from $77,734 in 2013 to $238,126 in 2022. The relationship between these two factors suggests that as property values increased, more residents were motivated to invest in homeownership, possibly viewing it as a sound financial decision.
Federal interest rates played a crucial role in shaping homeownership trends in Cicero. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This favorable borrowing environment likely contributed to the initial rise in homeownership, as mortgage financing became more accessible. As interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, the rate of homeownership growth slowed but remained positive, indicating a resilient local housing market.
Conversely, the percentage of renters in Cicero decreased from 51% in 2013 to 44% in 2022. Despite this decline, average rent prices showed a steady upward trend, increasing from $835 in 2013 to $1,000 in 2022. This rise in rent prices, even as the renter population decreased, could be attributed to overall property value appreciation and potentially improved rental property quality.
In 2023 and 2024, Cicero's housing market continued to evolve. The average home price in 2023 was $237,182, showing a slight decrease from 2022, while 2024 saw a rebound to $245,950. Interestingly, federal interest rates rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher rates may have impacted homebuying decisions, potentially explaining the temporary dip in home prices in 2023.
Looking ahead, predictive models suggest that Cicero's housing market will continue to grow, albeit at a more moderate pace. Over the next five years, average home prices are projected to increase by approximately 15-20%, potentially reaching around $280,000 to $295,000 by 2029. Average rent prices are expected to follow a similar trajectory, potentially rising to $1,150-$1,200 per month in the same period.
In summary, Cicero has experienced a significant shift towards homeownership over the past decade, accompanied by substantial increases in both home values and rent prices. The interplay between federal interest rates, property values, and local economic factors has shaped a resilient housing market. As Cicero moves forward, it is likely to see continued growth in property values and rents, albeit at a more measured pace, reflecting the town's evolving economic landscape and its appeal as a residential community near Chicago.
