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Fuller Park: Soaring Home Values and Declining Ownership in Chicago's Industrial Neighborhood
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
Fuller Park, a small neighborhood in Chicago, Illinois, has undergone significant changes in its housing market over the past decade. The area has experienced a notable shift from homeownership to renting, accompanied by fluctuations in average home prices and rent costs. This transformation reflects broader economic trends and local market dynamics.
The percentage of owner-occupied homes in Fuller Park has steadily decreased from 33% in 2013 to 18% in 2022. Concurrently, average home prices have shown a general upward trend. In 2013, the average home price was $48,260, which increased to $132,409 by 2022, representing a substantial 174% rise over this period. This inverse relationship between homeownership rates and average home prices suggests that as properties became more expensive, fewer residents could afford to purchase homes in the area.
Federal interest rates have played a role in shaping homeownership trends in Fuller Park. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable at around 33-34%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Fuller Park declined more rapidly, dropping from 33% in 2017 to 18% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership decreased, the percentage of renters in Fuller Park increased from 67% in 2013 to 82% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. The average rent peaked at $800 in 2013 and has since fluctuated, reaching $635 in 2022. This relatively stable rent environment, despite the increasing proportion of renters, could be attributed to various factors, including local housing policies or economic conditions affecting the neighborhood.
In 2023, the average home price in Fuller Park decreased slightly to $126,880, with the federal interest rate rising to 5.02%. Moving into 2024, the average home price has rebounded to $134,772, while the federal interest rate has further increased to 5.33%. These high interest rates may continue to impact homeownership trends in the neighborhood.
Looking ahead, based on the historical data and current trends, it is projected that average home prices in Fuller Park may continue to rise moderately over the next five years, potentially reaching around $150,000 by 2029. Average rent prices, which have been more volatile, are predicted to stabilize and potentially increase slightly, possibly reaching $700 by 2029.
In summary, Fuller Park has experienced a significant shift towards renting, with homeownership rates declining as average home prices have increased. The neighborhood has seen substantial appreciation in property values, while rent prices have remained relatively stable. These trends, coupled with rising interest rates, suggest that Fuller Park may continue to see a predominance of renters in the coming years, with potential for further increases in property values.
