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Clarendon Hills: Rising Home Values and Ownership Rates Amid Interest Rate Fluctuations
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
Clarendon Hills, located in Illinois, is a charming suburban community known for its small-town atmosphere and excellent schools. Over the past decade, this village has experienced notable shifts in homeownership rates and property values, reflecting broader economic trends and local market dynamics.
From 2013 to 2022, Clarendon Hills saw a significant increase in homeownership rates, rising from 72% to 81%. This upward trend in homeownership coincided with fluctuations in average home prices. In 2013, the average home price was $409,223, which climbed to $545,219 by 2022, representing a substantial 33.2% increase over the nine-year period. The year 2021 marked a particularly strong surge in the housing market, with average home prices jumping from $470,246 in 2020 to $507,864, a 8% increase in just one year.
The relationship between federal interest rates and homeownership rates in Clarendon Hills demonstrates the typical inverse correlation. As interest rates remained historically low from 2013 to 2021, ranging from 0.08% to 1.68%, homeownership rates steadily increased. This trend aligns with the general principle that lower interest rates make mortgages more affordable, encouraging home purchases. The substantial rise in homeownership from 72% in 2013 to 82% in 2021 coincided with these favorable borrowing conditions.
Conversely, as homeownership rates increased, the percentage of renters in Clarendon Hills decreased from 28% in 2013 to 19% in 2022. Despite this decline in the renter population, average rent prices showed an overall upward trend. In 2013, the average rent was $1,297, which fluctuated over the years but ultimately settled at $1,089 in 2022. Interestingly, the lowest average rent of $1,078 was recorded in 2014 when the renter percentage was at 30%, suggesting that other factors beyond simple supply and demand were influencing rent prices in the village.
Looking at the most recent data, 2023 saw average home prices in Clarendon Hills reach $562,044, a 3.1% increase from 2022. This upward trend continued into 2024, with average home prices climbing to $595,411, representing a significant 5.9% year-over-year increase. These price increases occurred despite rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, suggesting strong demand for housing in the area even in a higher interest rate environment.
Applying predictive models to forecast the next five years, we anticipate that average home prices in Clarendon Hills will continue to rise, albeit at a potentially slower pace due to higher interest rates. The average home price could potentially reach around $650,000 to $700,000 by 2029. For rent prices, the forecast suggests a moderate increase, potentially reaching an average of $1,300 to $1,400 per month by 2029, assuming economic conditions remain stable and housing demand in the area continues to be strong.
In summary, Clarendon Hills has experienced a notable increase in homeownership rates over the past decade, accompanied by substantial growth in average home prices. The inverse relationship between low interest rates and rising homeownership was clearly demonstrated until 2022. Despite a decreasing renter population, average rent prices have shown resilience with some fluctuations. The continued rise in home prices in 2023 and 2024, even with higher interest rates, indicates robust demand for housing in this desirable Illinois village.
