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East Garfield Park: Rising Home Values Amidst Consistent Rental Dominance
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
East Garfield Park, a neighborhood in Chicago, Illinois, has experienced significant changes in its housing market over the past decade. Despite maintaining a consistent homeownership rate of around 25%, the area has seen substantial growth in average home prices. From 2013 to 2022, average home values increased by 198%, rising from $71,403 to $212,958. This trend indicates a notable appreciation in property values while the proportion of homeowners remained relatively stable.
The impact of federal interest rates on homeownership in East Garfield Park has been less pronounced than might be expected. Between 2013 and 2016, when interest rates were exceptionally low (0.11% to 0.4%), the homeownership rate increased slightly from 26% to 26%. As interest rates rose more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate remained steady at 26%. This suggests that local economic conditions and housing affordability may have a greater influence on homeownership trends in this neighborhood than interest rates alone.
Renter occupancy has consistently dominated the housing tenure in East Garfield Park, accounting for 74-77% of occupied housing units. Average rent prices have shown an overall upward trend, increasing from $886 in 2013 to $963 in 2022, representing an 8.7% rise over nine years. Interestingly, this increase in rent prices occurred despite a decrease in the neighborhood's population from 21,943 in 2013 to 20,040 in 2022, indicating that factors other than population growth are driving the rise in rental costs.
As of 2024, the average home price in East Garfield Park stands at $209,821, showing a slight increase from the 2023 value of $206,613. This indicates a continued upward trend in property values, albeit at a more moderate pace compared to previous years. The federal interest rate in 2024 is 5.33%, significantly higher than the rates observed in the early 2010s. This higher interest rate environment may impact future homeownership trends and property values in the neighborhood.
Predictive models suggest that average home prices in East Garfield Park may continue to rise over the next five years, potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase moderately, reflecting the overall trend of rising housing costs in the area. However, the rate of increase may be tempered by the neighborhood's decreasing population trend.
In summary, East Garfield Park has maintained a consistent ratio of renters to homeowners over the past decade, with renters comprising the majority. Despite this stability, the neighborhood has seen significant appreciation in average home values and moderate increases in average rent prices. The impact of federal interest rates on homeownership has been less pronounced than expected, suggesting local factors play a crucial role in shaping housing trends in this Chicago neighborhood.
