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Lake Barrington's Rising Home Values: A Suburban Homeownership Haven
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
Lake Barrington, located in Illinois, is a small suburban community known for its high rate of homeownership and stable housing market. The city has experienced consistent trends in both ownership percentages and average home prices over the past decade. From 2013 to 2022, the percentage of owner-occupied housing units increased from 91% to 95%, while average home prices rose from $334,707 to $422,473.
The relationship between homeownership rates and average home prices in Lake Barrington shows a positive correlation. As the percentage of owner-occupied units increased from 91% in 2013 to 95% in 2022, average home prices also saw a significant rise. This trend indicates a strong demand for homeownership in the area, even as prices appreciated. For example, in 2013, when the ownership rate was 91%, the average home price was $334,707. By 2022, with a 95% ownership rate, the average home price had increased to $422,473, representing a 26.2% increase over nine years.
Federal interest rates have played a role in homeownership trends in Lake Barrington. During periods of lower interest rates, such as from 2013 to 2016 when rates ranged from 0.11% to 0.40%, homeownership remained stable at around 90-91%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership actually increased to 95%. This suggests that other factors, such as local economic conditions or housing preferences, may have had a stronger influence on homeownership rates in this community than national interest rate trends.
The rental market in Lake Barrington has shown an inverse relationship to homeownership trends. As the percentage of renter-occupied units decreased from 8% in 2013 to 5% in 2022, average rent prices fluctuated but generally increased. In 2013, the average rent was $1,810, rising to a peak of $2,052 in 2019 before settling at $1,725 in 2022. This trend suggests that despite the shrinking rental market, demand for rental properties remained relatively strong, potentially due to limited supply or the desirability of the area.
In 2023 and 2024, Lake Barrington continued to see growth in average home prices. The average home price reached $433,448 in 2023 and further increased to $455,068 in 2024. This represents a 7.7% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen in over a decade.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in Lake Barrington will continue to appreciate over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $500,000 by 2029. Average rent prices are expected to remain relatively stable or see modest increases, potentially reaching around $1,900 per month by 2029, as the rental market remains small but competitive.
In summary, Lake Barrington has demonstrated a strong preference for homeownership, with consistently high owner-occupancy rates despite rising home prices. The community has shown resilience in its housing market, maintaining growth in property values even in the face of increasing interest rates. The rental market, while small, has remained relatively stable, suggesting a balanced housing ecosystem that caters primarily to homeowners while still providing options for renters.
