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Grayslake: Home Values and Ownership Trends in a Lake-Dotted 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
Grayslake, located in Illinois, is a suburban community known for its picturesque lakes and vibrant downtown area. Over the past decade, this city has experienced notable shifts in homeownership rates and housing market dynamics. The overall trend shows a slight decrease in homeownership, accompanied by fluctuations in average home prices and rent costs.
The homeownership percentage in Grayslake has seen a gradual decline from 78% in 2013 to 76% in 2022. This trend correlates interestingly with the movement in average home prices. In 2013, the average home price was $187,528, which steadily increased to $300,046 by 2022, representing a significant 60% rise over nine years. Despite this substantial increase in home values, the decrease in homeownership was relatively modest, suggesting a resilient desire for homeownership among Grayslake residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Grayslake. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 73% to 78%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, we observed a slight downward trend in homeownership, dropping to 76% in 2022. This pattern aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in Grayslake has shown a corresponding increase, rising from 22% in 2013 to 24% in 2022. This shift coincides with changes in average rent prices. In 2013, the average rent was $1,386, which increased to $1,444 by 2022, representing a 4.2% increase over nine years. Interestingly, the peak in average rent was observed in 2019 at $1,473, before slightly decreasing in subsequent years. This trend suggests that while renting has become more prevalent, rent prices have not increased as dramatically as home prices, potentially making renting a more attractive option for some residents.
Looking at the most recent data, average home prices in Grayslake continued to rise, reaching $313,532 in 2023 and $327,216 in 2024. This represents a further 9.1% increase from 2022 to 2024. Concurrently, federal interest rates have also seen a significant uptick, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may pose challenges for potential homebuyers, potentially affecting future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Grayslake will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $380,000 to $400,000. Average rent prices are also expected to increase, potentially reaching around $1,600 to $1,700 per month by 2029, assuming a continuation of current trends and economic conditions.
In summary, Grayslake has experienced a gradual shift towards a slightly higher proportion of renters over the past decade, alongside substantial increases in average home prices. Despite rising home values and recent increases in interest rates, homeownership remains strong at 76%. The interplay between federal interest rates, home prices, and rent costs continues to shape the housing market dynamics in this Illinois community, with expectations of continued growth in both home values and rent prices in the coming years.
