Loading Content...
Elmwood Park, Illinois: Rising Home Values Amidst Declining Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Elmwood Park, located in Illinois, is a vibrant community with a rich history and diverse population. This densely populated suburb of Chicago has experienced notable shifts in homeownership rates and housing prices over the past decade. The city has seen a gradual decrease in homeownership, coupled with significant increases in both average home prices and average rent prices.
The homeownership rate in Elmwood Park has shown a steady decline from 2013 to 2022. In 2013, 69% of residents owned their homes, but by 2022, this figure had dropped to 62%. Interestingly, this decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $157,059, which rose dramatically to $303,364 by 2022, representing a 93% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
The federal interest rates have played a significant role in shaping homeownership trends in Elmwood Park. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, ranging between 66% and 69%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a more pronounced decline. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership declined, the percentage of renters in Elmwood Park increased from 31% in 2013 to 38% in 2022. This shift coincided with a significant rise in average rent prices. In 2013, the average rent was $1,044, which increased to $1,357 by 2022, representing a 30% increase. The growing renter population and rising rent prices suggest a strong demand for rental properties in the area, possibly driven by those priced out of the homeownership market.
In 2023 and 2024, Elmwood Park continued to see growth in average home prices. The average home price reached $307,089 in 2023 and further increased to $318,779 in 2024, representing a 3.8% year-over-year increase. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis. These high interest rates may further impact homeownership trends in the coming years.
Looking ahead, predictive models suggest that both average home prices and average rent prices in Elmwood Park are likely to continue their upward trajectory over the next five years. Based on historical trends, average home prices could potentially reach around $380,000 by 2029, while average rent prices might approach $1,600 per month. However, these projections may be influenced by various factors, including economic conditions, local development, and broader housing market trends.
In summary, Elmwood Park has experienced a clear shift towards a renter-majority population over the past decade, driven by rising home prices and fluctuating interest rates. The substantial increases in both average home prices and average rent prices reflect the area's growing desirability and the broader trends in the Chicago metropolitan housing market. As these trends continue, the community may need to address challenges related to housing affordability and availability to maintain its diverse population and vibrant character.
