Federal interest rates have played a role in shaping homeownership trends in Indian Head Park. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.1% to 0.4%. During this time, homeownership rates in the village remained high, between 85% and 92%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Indian Head Park showed remarkable stability, maintaining around 88-89%. This suggests that local factors, such as community desirability and stable employment, may be offsetting the potential negative impact of rising interest rates on homeownership.

Renter percentages in Indian Head Park have fluctuated slightly over the years, ranging from 8% to 15% between 2013 and 2022. Average rent prices have shown some volatility, with notable changes occurring in recent years. In 2013, the average rent was $977, which increased to $995 by 2015. However, there was a significant drop to $809 in 2018, followed by a recovery to $1,081 in 2021. The most recent data for 2022 shows an average rent of $836, indicating a decrease from the previous year. These fluctuations in rent prices don't appear to have a strong correlation with the renter percentage, which has remained relatively stable around 11-12% in recent years.

Looking at the most recent data, the average home price in Indian Head Park reached $310,047 in 2023 and further increased to $319,641 in 2024. This continued upward trend in home prices is occurring alongside higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the housing market in Indian Head Park appears to be maintaining its strength.

Applying predictive models to forecast 5-year trends, we can expect average home prices in Indian Head Park to continue their upward trajectory, potentially reaching around $350,000 to $370,000 by 2029. Rent prices may stabilize and show moderate growth, possibly ranging between $900 to $1,100 per month over the next five years, assuming no major economic disruptions.

In summary, Indian Head Park demonstrates a robust housing market characterized by high homeownership rates and steadily increasing property values. The community has shown resilience in maintaining stable ownership percentages despite rising home prices and fluctuating interest rates. The rental market, while smaller, shows some volatility in pricing but remains a consistent alternative for a portion of the population. As the village moves forward, it appears well-positioned to maintain its attractive balance of homeownership and rental options, supporting a diverse and stable community.