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Lockport's Rising Home Values and Shifting Ownership: A Decade of Change in the Canal City
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
Lockport, Illinois, a picturesque city in Will County, is known for its historic downtown and the Illinois and Michigan Canal. With a population of 29,471 in 2022, this suburban community has experienced notable shifts in homeownership rates and housing prices over the past decade. The city has generally maintained a high rate of homeownership, though it has seen a slight decline in recent years, while average home prices and average rent have shown an overall upward trend.
The homeownership rate in Lockport has experienced a gradual decline from 2013 to 2022. In 2013, 86% of residents owned their homes, but by 2022, this figure had decreased to 83%. Despite this slight decline, Lockport still maintains a significantly higher homeownership rate compared to the national average. Interestingly, as homeownership rates declined, average home prices in Lockport showed a steady increase. In 2013, the average home price was $198,888, rising to $302,075 by 2022, representing a substantial 52% increase over this period.
The relationship between federal interest rates and homeownership rates in Lockport follows a generally inverse pattern. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates in Lockport remained relatively stable, hovering around 82-86%. However, as interest rates began to rise more significantly in 2022 to 1.68%, we see a slight uptick in homeownership to 83%, possibly indicating a rush to purchase homes before rates increased further.
The percentage of renters in Lockport has shown a gradual increase from 13% in 2013 to 17% in 2022. This trend coincides with an overall increase in average rent prices. In 2013, the average rent was $1,344, rising to $1,400 by 2022, an increase of about 4.2%. It's worth noting that the population of Lockport grew from 28,507 in 2013 to 29,471 in 2022, which may have contributed to the increased demand for rental properties and the subsequent rise in rent prices.
As of 2024, the average home price in Lockport has reached $328,494, continuing the upward trend observed in previous years. This represents a significant increase from the 2022 average of $302,075. The federal interest rate in 2024 stands at 5.33%, which is notably higher than the 1.68% rate in 2022. This increase in interest rates could potentially impact future homeownership rates and housing market dynamics in Lockport.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Lockport are likely to continue their upward trajectory over the next five years, potentially reaching around $380,000 by 2029. Average rent prices may also continue to rise, albeit at a more moderate pace, potentially reaching approximately $1,600 by 2029. However, these projections could be influenced by various factors such as economic conditions, local development, and changes in interest rates.
In summary, Lockport has maintained a strong homeownership rate despite a slight decline over the past decade. The city has experienced significant growth in average home prices, with a more modest increase in average rent prices. The relationship between interest rates and homeownership rates has generally followed expected patterns, with lower rates corresponding to stable homeownership levels. As Lockport continues to grow and evolve, these housing market trends will play a crucial role in shaping the city's future development and community dynamics.
