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Evanston, Illinois: Rising Home Values and Ownership Trends in a University City
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
Evanston, Illinois, a vibrant city located just north of Chicago, is home to Northwestern University and boasts a rich cultural and educational atmosphere. This analysis examines the trends in homeownership, average home prices, and average rent prices in Evanston from 2013 to 2022. Overall, the city has experienced fluctuations in homeownership rates, a general increase in average home prices, and rising average rent prices during this period.
The homeownership rate in Evanston has shown some variability over the years. In 2013, 58% of housing units were owner-occupied. This percentage decreased to 53% in 2015 but rebounded to 58% in 2018. By 2022, the homeownership rate settled at 56%. Concurrently, average home prices in Evanston have generally trended upward. In 2013, the average home price was $296,573, which increased to $406,879 by 2022, representing a 37% increase over this period. Notably, there was a significant jump in average home prices between 2020 and 2021, from $362,503 to $385,021, a 6.2% increase in a single year.
Federal interest rates have played a role in homeownership trends in Evanston. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period coincided with fluctuations in homeownership rates, but generally maintained levels above 55%. The low interest rates likely contributed to the overall stability in homeownership, as they made financing more accessible to potential buyers.
Regarding rental trends, the percentage of renter-occupied housing units in Evanston has fluctuated inversely to homeownership rates. In 2013, 42% of housing units were renter-occupied, peaking at 47% in 2015, and returning to 44% by 2022. Average rent prices have shown a general upward trend. In 2013, the average rent was $1,184, which increased to $1,561 by 2022, representing a 31.8% increase over this period. The most significant jump occurred between 2020 and 2021, when average rent rose from $1,435 to $1,627, a 13.4% increase in one year.
In 2023 and 2024, Evanston's housing market continued to evolve. The average home price in 2023 reached $414,229, a further increase from 2022. In 2024, the average home price rose to $422,683, indicating continued growth in the real estate market. Concurrently, federal interest rates increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and affordability.
Looking ahead, predictive models suggest that average home prices in Evanston may continue to rise over the next five years, potentially reaching around $460,000 by 2029. Average rent prices are also projected to increase, possibly exceeding $1,800 per month within the same timeframe. These predictions are based on historical trends and current market conditions.
In summary, Evanston's housing market from 2013 to 2022 was characterized by relatively stable homeownership rates, steadily increasing average home prices, and rising average rent prices. The city experienced significant growth in both home values and rental costs, particularly in recent years. The interplay between federal interest rates, homeownership rates, and housing costs continues to shape Evanston's real estate landscape, with projections indicating further increases in both home prices and rents in the coming years.
