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Logan Square: Rising Home Values and Shifting Ownership in Chicago's Historic Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Logan Square, a vibrant neighborhood in Chicago, Illinois, has experienced notable shifts in its housing market over the past decade. This area, known for its diverse community and cultural attractions, has seen significant changes in homeownership rates, average home prices, and average rent prices. The homeownership rate in Logan Square has shown a gradual increase over the years. In 2013, 35% of residents owned their homes, and by 2022, this figure had risen to 38%. This upward trend in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price in Logan Square was $275,960, and by 2022, it had climbed to $480,872, representing a 74% increase over nine years.
The relationship between federal interest rates and homeownership rates in Logan Square appears to follow established trends. From 2013 to 2016, when interest rates were relatively low (ranging from 0.11% to 0.40%), the homeownership rate remained stable at 35%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate actually increased slightly to 37%. This could suggest that despite rising interest rates, other factors such as strong local economic conditions or desirable neighborhood characteristics continued to drive home purchases in Logan Square.
Renter percentages in Logan Square have shown a slight decrease, mirroring the increase in homeownership. In 2013, 65% of residents were renters, and by 2022, this had decreased to 62%. Despite this slight decline in the renter population, average rent prices have risen consistently. The average rent increased from $1,089 in 2013 to $1,304 in 2022, a 20% increase over the period. This upward trend in rent prices occurred even as the neighborhood's population decreased from 85,310 in 2013 to 79,083 in 2022, suggesting strong demand for rental properties in the area.
Looking at the most recent data, the average home price in Logan Square in 2023 was $469,900, showing a slight decrease from 2022. However, in 2024, the average home price has risen again to $474,993. This recent uptick occurs alongside a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying activity in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Logan Square will continue to rise, albeit at a more moderate pace than seen in the previous decade. The average home price could potentially reach around $525,000 by 2029. Average rent prices are also expected to increase, potentially reaching approximately $1,500 per month by 2029. These projections assume continued demand for housing in the area and take into account the current economic conditions and housing market trends.
In summary, Logan Square has experienced a gradual increase in homeownership rates and significant growth in both average home prices and average rent prices over the past decade. The neighborhood has shown resilience in its housing market, with home values appreciating substantially and rent prices rising steadily, even as the overall population has decreased. The recent uptick in interest rates may influence future homebuying trends, but the area's desirability and established upward price trends suggest continued strength in the Logan Square housing market.
