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Housing Market Resilience: Burbank's Steady Homeownership Amid Rising Values
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
Burbank, Illinois, a small city spanning just 4.17 square miles, is located in Cook County and is part of the Chicago metropolitan area. This suburban community has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in Burbank has remained relatively stable, with a slight decline from 81% in 2013 to 81% in 2022. During this period, average home prices have shown a significant upward trend. In 2013, the average home price was $135,531, which steadily increased to $258,310 by 2022, representing a substantial 90.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in Burbank appears to follow general economic principles. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates remained high at 81%. As interest rates began to rise from 2017 onwards, there was a slight dip in homeownership to 79% in 2018 and 2019. However, the city saw a return to 81% homeownership in 2021 and 2022, despite rising interest rates, suggesting other factors may be influencing local housing decisions.
The rental market in Burbank has shown interesting trends alongside homeownership changes. The percentage of renters increased from 17% in 2013 to 19% in 2022. Average rent prices have fluctuated during this period, starting at $1,235 in 2013, peaking at $1,352 in 2018, and then decreasing to $1,190 in 2022. This represents a slight overall decrease of 3.6% in average rent from 2013 to 2022, despite the increase in the renter population.
In 2023, the average home price in Burbank reached $263,905, with federal interest rates at 5.02%. Moving into 2024, the average home price further increased to $276,157, while interest rates slightly rose to 5.33%. These figures indicate a continuing upward trend in home values despite higher borrowing costs.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. If the current trajectory continues, average home prices in Burbank could potentially reach around $325,000 by 2029, representing an approximate 18% increase from 2024 levels. Average rent prices, which have shown more volatility, might stabilize around $1,300 per month, assuming economic conditions remain relatively stable and housing supply keeps pace with population growth.
In summary, Burbank has demonstrated resilience in its housing market, maintaining high homeownership rates despite rising home prices and fluctuating interest rates. The rental market has seen an increase in the proportion of renters, yet average rent prices have remained relatively stable. The city's proximity to Chicago and its established suburban character likely contribute to its sustained housing demand, as reflected in the steady increase in average home values over the past decade.
