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Lake Villa, Illinois: Rising Home Values and Shifting Ownership Patterns in a Small Village
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lake Villa, located in Illinois, is a suburban community known for its picturesque lakes and natural beauty. Over the past decade, this village has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Lake Villa has seen a gradual decline since 2014, when it peaked at 83%. By 2022, the rate had decreased to 79%. This trend coincides with changes in average home prices, which have shown a consistent upward trajectory. In 2010, the average home price was $200,211, and by 2022, it had risen to $306,472, representing a significant 53% increase over 12 years.
Federal interest rates have played a role in shaping homeownership trends in Lake Villa. During periods of low interest rates, such as from 2010 to 2015 when rates remained below 0.2%, homeownership rates were generally higher, ranging from 81% to 83%. As interest rates began to rise in 2016, reaching 1.83% by 2018, homeownership rates started to decline, dropping to 79% by 2018. This trend suggests that higher interest rates may have made home purchases less affordable for some residents.
Conversely, the percentage of renters in Lake Villa has increased from 17% in 2014 to 21% in 2022. This rise in renters coincides with an overall increase in average rent prices. In 2013, the average rent was $1,316, which rose to $1,280 by 2022, representing a modest 3% decrease over nine years. However, it's worth noting that rent prices have fluctuated during this period, reaching a peak of $1,467 in 2017 before declining slightly in subsequent years.
Looking at the most recent data, the average home price in Lake Villa continued its upward trend, reaching $322,750 in 2023 and further increasing to $336,207 in 2024. This represents a 5.2% year-over-year increase from 2022 to 2023, and a 4.2% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the village.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Lake Villa will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $400,000 to $425,000, assuming a conservative annual growth rate of 3-5%. Average rent prices are also expected to increase, potentially reaching $1,500 to $1,600 per month by 2029, based on historical trends and accounting for inflation.
In summary, Lake Villa has experienced a gradual shift from homeownership to renting over the past decade, with average home prices showing substantial growth. The interplay between federal interest rates, housing affordability, and local market conditions has shaped these trends. As the village moves forward, it will likely continue to see moderate growth in both home values and rental prices, reflecting its desirability as a suburban community in Illinois.
