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Darien, Illinois: A Decade of Rising Home Values and Stable Ownership
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
Darien, Illinois, a vibrant suburban city located approximately 25 miles southwest of Chicago, has experienced significant changes in its housing market over the past decade. With a population of 27,490 in 2022 and spanning 6.28 square miles, Darien offers a blend of suburban charm and urban accessibility. The city has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
Homeownership in Darien has shown a slight downward trend over the years. In 2013, the homeownership rate stood at 83%, gradually declining to 80% by 2022. This shift coincides with an overall increase in average home prices. In 2013, the average home price in Darien was $261,675, which steadily rose to $374,634 by 2022, representing a substantial 43% increase over nine years. This upward trajectory in home prices may have contributed to the marginal decrease in homeownership, as rising costs potentially priced out some prospective buyers.
The relationship between federal interest rates and homeownership rates in Darien presents an interesting dynamic. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), homeownership rates remained relatively stable at around 81-83%. However, as interest rates began to rise more significantly from 2016 onwards, reaching 1.68% in 2022, there was a corresponding slight decline in homeownership rates to 80%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options, while rising rates can make mortgages less accessible.
The rental market in Darien has shown a complementary trend to homeownership. The percentage of renters increased from 17% in 2013 to 20% in 2022. This growth in the renter population coincided with a notable increase in average rent prices. In 2013, the average rent was $1,342, which rose to $1,656 by 2022, marking a 23.4% increase. The rise in both renter percentage and average rent prices suggests a growing demand for rental properties in Darien, possibly driven by those unable to enter the increasingly expensive housing market.
Looking at the most recent data, the average home price in Darien reached $388,330 in 2023 and further increased to $410,144 in 2024. This represents a significant jump of 9.5% from 2022 to 2024. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, marking the highest levels in over a decade. These high interest rates, combined with rising home prices, may continue to impact homeownership trends in Darien.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Darien will continue to rise, potentially reaching around $475,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, the forecast suggests a continued increase, potentially reaching approximately $1,900 by 2029, assuming the current growth rate persists.
In summary, Darien's housing market has demonstrated a clear trend of increasing property values and rents, coupled with a slight shift towards renting. The city's proximity to Chicago, combined with its suburban appeal, continues to drive demand in both the home buying and rental markets. As average home prices and interest rates rise, the coming years may see further adjustments in the balance between homeownership and renting, with affordability playing a crucial role in shaping Darien's housing landscape.
