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Harwood Heights: Home Values and Ownership Trends Amidst Interest Rate Fluctuations
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
Harwood Heights, a vibrant village in Illinois, has experienced notable shifts in its housing landscape over the past decade. This compact community, spanning just 0.82 square miles, has seen fluctuations in homeownership rates and housing prices that reflect broader economic trends and local market dynamics.
The homeownership rate in Harwood Heights has shown a general upward trend from 2013 to 2018, before experiencing a slight decline in recent years. In 2013, 59% of residents owned their homes, and this figure rose steadily to peak at 67% in 2018. However, by 2022, the ownership rate had decreased to 60%. Concurrently, average home prices in the village have demonstrated substantial growth. In 2013, the average home price was $197,281, and it climbed consistently, reaching $326,274 by 2022, representing a 65% increase over this period.
The relationship between federal interest rates and homeownership rates in Harwood Heights aligns with established economic principles. As interest rates remained low from 2013 to 2016, hovering around 0.1%, homeownership in the village increased from 59% to 64%. This trend continued until 2018, with ownership peaking at 67% while interest rates were still relatively low at 1.83%. However, as interest rates began to rise more sharply from 2019 onwards, reaching 1.68% in 2022, homeownership rates in Harwood Heights started to decline, dropping to 60% by 2022.
Renter percentages in Harwood Heights have inversely mirrored homeownership trends. In 2013, 41% of residents were renters, and this proportion decreased to a low of 33% in 2017 and 2018. However, the renter population has since increased, reaching 40% by 2022. Average rent prices have shown some volatility over this period. In 2013, the average rent was $1,260, which decreased to $1,081 by 2016. Rent prices then fluctuated, reaching $1,113 in 2022, a slight increase from the previous year but still below the 2013 level. These trends suggest that while homeownership became more prevalent, rental markets experienced some pressure, possibly due to increased demand for rental properties as home prices rose.
As of 2024, the average home price in Harwood Heights has risen to $352,152, continuing the upward trend observed in previous years. This represents a 7.8% increase from the 2022 average of $326,274. Notably, federal interest rates have also increased significantly, reaching 5.33% in 2024, the highest level in over a decade. This sharp rise in interest rates may impact future homeownership trends and housing affordability in the village.
Looking ahead, predictive models suggest that average home prices in Harwood Heights may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are projected to stabilize or increase moderately, influenced by the balance between housing demand and affordability concerns. The village's limited geographic area and established housing stock may contribute to sustained property values, while rental markets could see increased demand if homeownership becomes less accessible due to higher financing costs.
In summary, Harwood Heights has experienced a notable increase in homeownership rates and average home prices from 2013 to 2018, followed by a slight reversal of this trend in recent years. The interplay between federal interest rates, housing prices, and rental markets has shaped the village's housing dynamics. As the community moves forward, balancing housing affordability with property value appreciation will likely be a key consideration for residents and policymakers alike.
