Loading Content...
Hickory Hills, Illinois: Rising Home Values and Stable Ownership in a Compact City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hickory Hills, Illinois, is a suburban city located southwest of Chicago. With a population of 14,603 in 2022 and a land area of 2.84 square miles, it offers a blend of urban amenities and suburban charm. The city has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
Homeownership in Hickory Hills has remained relatively stable, with a slight decline from 70% in 2013 to 67% in 2019, before rebounding to 70% in 2022. This trend coincides with changes in average home prices, which have shown consistent growth. In 2013, the average home price was $157,034, and by 2022, it had increased significantly to $276,743, representing a 76% rise over nine years. This substantial appreciation in home values may have influenced homeownership rates, as higher prices can make it more challenging for some residents to enter the housing market.
The relationship between federal interest rates and homeownership rates in Hickory Hills is noteworthy. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership remained steady at 70%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight decrease in homeownership to 67%. This pattern suggests that higher interest rates may have deterred some potential buyers, as mortgage costs increased.
Renter percentages in Hickory Hills have mirrored the homeownership trends, increasing from 30% in 2013 to 33% in 2019, before returning to 30% in 2022. Average rent prices have shown an overall upward trend, rising from $1,091 in 2013 to $1,243 in 2018, an increase of 14%. However, there has been some fluctuation in recent years, with average rent dropping to $1,097 in 2022. This decrease in rent prices, coupled with the increase in homeownership, suggests a potential shift in the local housing market dynamics.
In 2023 and 2024, Hickory Hills has continued to see growth in average home prices. The average home price reached $286,239 in 2023 and further increased to $299,950 in 2024, representing a 4.8% year-over-year increase. This growth has occurred despite the significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These high interest rates typically make mortgages more expensive, yet the housing market in Hickory Hills appears to remain robust.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in average home prices for Hickory Hills over the next five years. Assuming a conservative annual growth rate of 3-4%, average home prices could potentially reach $350,000-$365,000 by 2029. Average rent prices, which have shown more volatility, may stabilize and increase at a moderate pace, potentially reaching $1,200-$1,300 per month in the same timeframe.
In summary, Hickory Hills has demonstrated resilience in its housing market, with steadily increasing home values and a stable homeownership rate. The city has navigated through periods of low and high interest rates, maintaining a balanced ratio of owners to renters. The recent uptick in both home prices and interest rates suggests a strong local economy and continued demand for housing in this suburban Chicago community.
