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Gurnee, Illinois: Stable Homeownership Amidst Rising Home Values and Six Flags Attraction
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Gurnee, located in Illinois, is a vibrant community known for its popular attractions like Six Flags Great America amusement park. Over the past decade, this suburban village has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
Homeownership rates in Gurnee have remained relatively stable, with a slight increase in recent years. In 2013, the homeownership rate was 69%, and it dipped to 66% in 2019 before rising to 71% in 2022. This upward trend coincides with a significant increase in average home prices. In 2013, the average home price was $199,286, which steadily rose to $317,105 by 2022, representing a 59% increase over nine years. This correlation suggests that rising property values may have encouraged more residents to invest in homeownership, viewing it as a potentially lucrative long-term investment.
Federal interest rates have played a crucial role in shaping homeownership trends in Gurnee. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained relatively stable around 68-69%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 66% in 2019. However, when interest rates plummeted to 0.08% in 2021, homeownership rebounded to 69% and continued to rise to 71% in 2022, despite interest rates increasing to 1.68% that year.
Renter percentages in Gurnee have shown an inverse relationship to homeownership rates, naturally fluctuating between 29% and 34% from 2013 to 2022. Interestingly, average rent prices have generally increased over this period, rising from $1,230 in 2013 to $1,402 in 2022, a 14% increase. However, this increase has not been linear. For instance, average rent peaked at $1,488 in 2021 before declining slightly in 2022. These fluctuations in rent prices may be influenced by factors such as local economic conditions, housing supply, and population changes, which saw a slight decline from 37,908 in 2013 to 37,336 in 2022.
In 2023 and 2024, Gurnee has continued to see growth in average home prices. The average home price reached $331,202 in 2023 and further increased to $345,580 in 2024, representing a 9% rise from 2022 to 2024. This upward trend has occurred despite significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and market dynamics.
Looking ahead, based on historical trends and current market conditions, we can forecast potential 5-year trends for average home and rent prices in Gurnee. Average home prices are likely to continue their upward trajectory, potentially reaching around $400,000 by 2029, assuming a steady annual growth rate of 3-4%. Average rent prices may also continue to rise, albeit at a more moderate pace, potentially reaching approximately $1,600 by 2029, based on an estimated 2-3% annual increase.
In summary, Gurnee has demonstrated resilience in its housing market, with increasing homeownership rates despite rising home prices. The interplay between federal interest rates, home prices, and rental markets has shaped the local real estate landscape. As the community moves forward, it will be crucial to monitor how these trends evolve, particularly in light of the recent significant increases in both home prices and interest rates.
