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Frankfort: Rising Home Values and Steady Ownership in a Thriving Illinois Suburb
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
Frankfort, Illinois, a growing suburban community located approximately 35 miles southwest of Chicago, is known for its strong sense of community and excellent schools. The city has experienced steady population growth over the past decade, maintaining a high rate of homeownership while seeing significant increases in both average home prices and average rent prices. Homeownership in Frankfort has remained consistently high, with only a slight decrease from 96% in 2013 to 93% in 2022. This minor shift coincides with a substantial increase in average home prices, rising from $281,928 in 2013 to $413,101 in 2022, representing a 46.5% increase over nine years. Despite this significant appreciation in home values, the high homeownership rate suggests that Frankfort remains an attractive destination for those seeking to own property.
The relationship between federal interest rates and homeownership rates in Frankfort appears to have had minimal impact. Despite interest rates increasing from 0.11% in 2013 to 1.68% in 2022, the homeownership rate only decreased by 3 percentage points. This suggests that other factors, such as the desirability of the area and local economic conditions, may have a stronger influence on homeownership in Frankfort than national interest rate trends.
The renter population in Frankfort, while small, has grown from 4% in 2013 to 7% in 2022. This increase coincides with a rise in average rent prices, which grew from $1,353 in 2013 to $1,627 in 2022, a 20.3% increase. The growth in both renter percentage and average rent prices may be attributed to the overall population increase, which rose from 22,389 in 2013 to 25,011 in 2022, potentially creating more demand for rental properties.
Looking at the most recent data, average home prices in Frankfort continued to rise, reaching $437,701 in 2023 and $455,455 in 2024. This represents a 10.3% increase from 2022 to 2024. Notably, federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices continued to appreciate, suggesting strong demand for housing in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Frankfort will continue to rise, potentially reaching around $525,000 by 2029. This projection is based on the steady appreciation observed over the past decade and the area's continued desirability. Average rent prices are also expected to increase, potentially reaching approximately $1,950 by 2029, driven by the growing population and limited rental inventory.
In summary, Frankfort has maintained a remarkably high homeownership rate despite significant increases in average home prices. The community has experienced steady population growth, which has contributed to rising home values and rent prices. The resilience of the housing market in the face of increasing interest rates suggests that Frankfort remains a highly desirable location for homeowners and investors alike. As the community continues to grow, it is likely to see further appreciation in both home values and rental rates, making it an attractive market for long-term real estate investment.
