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Cottage Grove Heights: Rising Home Values and High Ownership Rates Amid Rental Market Volatility
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Cottage Grove Heights, a neighborhood in Chicago, Illinois, has experienced significant changes in homeownership rates and property values over the past decade. From 2013 to 2022, the community saw a notable increase in homeownership rates, rising from 80% to 88%. This trend coincided with a substantial rise in average home prices, which more than tripled from $52,949 in 2013 to $160,540 in 2022, representing a 203% increase over nine years.
The relationship between federal interest rates and homeownership rates in Cottage Grove Heights follows expected patterns. As interest rates remained historically low between 2013 and 2020, ranging from 0.09% to 0.38%, the homeownership rate in the neighborhood increased from 80% to 88%. This trend aligns with the general principle that lower interest rates make mortgages more affordable, potentially encouraging more residents to purchase homes.
Renter percentages in Cottage Grove Heights have fluctuated over the years but generally remained low compared to homeownership rates. The percentage of renter-occupied units increased slightly from 11% in 2013 to 12% in 2022. During this period, average rent prices also saw an upward trend, rising from $952 per month in 2013 to $1,297 in 2022, representing a 36% increase. In 2021, there was a significant spike in average rent to $1,719, before returning to more moderate levels in 2022.
Recent data from 2023 and 2024 shows a slight decline in average home prices in Cottage Grove Heights. The average home price decreased to $148,971 in 2023 and further to $146,735 in 2024, representing a 7.2% decrease from the 2022 peak of $160,540. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may be contributing to the cooling of home prices.
Applying predictive models to forecast 5-year trends, average home prices in Cottage Grove Heights may experience a period of stabilization or modest growth, assuming interest rates remain elevated. Average rent prices are likely to continue their upward trajectory, albeit at a more moderate pace, potentially reaching around $1,500 per month by 2029. However, these projections are subject to change based on various economic factors and local market conditions.
In summary, Cottage Grove Heights has demonstrated a strong trend towards homeownership over the past decade, with significant increases in both the percentage of owner-occupied homes and average home prices. The neighborhood has also seen steady growth in average rent prices, although renter percentages have remained relatively stable. Recent data suggests a potential cooling in the housing market, likely influenced by rising interest rates. Moving forward, the interplay between interest rates, housing affordability, and local economic conditions will continue to shape the real estate landscape in Cottage Grove Heights.
