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Fulton River District: Declining Home Values and Ownership Amidst Rising Rents
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Fulton River District in Chicago, Illinois, has experienced significant changes in its real estate market over the past decade. This urban neighborhood, known for its mix of residential and commercial properties, has seen a notable shift in homeownership rates and property values. From 2013 to 2022, the district witnessed a decline in homeownership percentage, dropping from 44% to 32%, while average home prices fluctuated, ultimately decreasing from $421,099 to $362,038.
Federal interest rates have played a crucial role in shaping homeownership trends in the Fulton River District. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the relatively higher homeownership rates during this time. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in the district declined, dropping from 39% in 2017 to 32% in 2022.
The rental market in the Fulton River District has shown significant growth during this period. The renter percentage increased from 56% in 2013 to 68% in 2022, correlating with a substantial rise in average rent prices. In 2013, the average rent was $1,325, increasing steadily to $2,404 by 2022, representing an 81.4% increase over nine years. This growth in the rental market outpaced changes in homeownership, suggesting a strong demand for rental properties. The neighborhood's population growth, from 4,618 in 2013 to 6,197 in 2022, likely contributed to the increased demand for rentals and the subsequent rise in rent prices.
In 2023 and 2024, the average home prices in the Fulton River District continued their downward trend, reaching $351,450 in 2023 and $334,072 in 2024. This decline occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. The higher interest rates may have contributed to the continued downward pressure on home prices in the area.
Based on current trends, projections suggest that average home prices in the Fulton River District may continue to decrease over the next five years, potentially reaching around $300,000 by 2029. Conversely, average rent prices are expected to maintain their upward trajectory, potentially surpassing $2,800 per month within the same timeframe. These projections assume a continuation of current market conditions and economic factors.
In summary, the Fulton River District has experienced a notable shift towards a stronger rental market, characterized by decreasing homeownership rates and increasing average rent prices. Average home prices have shown volatility, peaking in 2016 and declining in recent years. The neighborhood's growing population and changing economic conditions, including rising interest rates, have played significant roles in shaping these real estate trends. The inverse relationship between homeownership rates and property values suggests that rising prices may have pushed some potential buyers out of the market, contributing to the growth of the rental sector.
