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McHenry, Illinois: Rising Home Values and Resilient Ownership in a Scenic Riverside City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
McHenry, Illinois, is a vibrant city located in the Chicago metropolitan area, known for its picturesque lakes and natural beauty. Over the past decade, McHenry has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The city has seen a general trend of decreasing homeownership rates from 2013 to 2016, followed by a period of stability and then a recent uptick. In 2013, homeownership stood at 76%, gradually declining to 70% by 2016. However, from 2018 to 2022, the rate stabilized around 71% before increasing to 76% in 2022. This trend coincides with changes in average home prices, which have shown consistent growth since 2012. The average home price in McHenry rose from $139,795 in 2012 to $260,107 in 2022, representing an impressive 86% increase over this period.
Federal interest rates have played a significant role in shaping homeownership trends in McHenry. The period of extremely low interest rates from 2010 to 2016, ranging from 0.09% to 0.4%, coincided with the initial decline in homeownership rates. However, as interest rates began to rise moderately from 2017 to 2019 (1% to 2.16%), homeownership rates stabilized. The sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) may have contributed to the recent uptick in homeownership, as lower rates typically make mortgages more affordable.
Renter percentages in McHenry have generally mirrored the inverse of homeownership trends. The proportion of renters increased from 24% in 2013 to a peak of 30% in 2016, before gradually declining to 24% in 2022. Average rent prices have shown a steady upward trend, rising from $1,261 in 2013 to $1,408 in 2022, a 12% increase. This rise in rent prices, coupled with the city's relatively stable population (25,716 in 2022), suggests a consistent demand for rental properties despite the recent shift towards homeownership.
In 2023 and 2024, McHenry's housing market continued to show strength. The average home price reached $268,324 in 2023 and further increased to $279,456 in 2024, representing a 7.4% growth over two years. This growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for some buyers.
Looking ahead, predictive models suggest that average home prices in McHenry may continue to rise over the next five years, potentially reaching around $320,000 by 2029. This projection is based on the consistent upward trend observed since 2012. Average rent prices are also expected to increase, potentially surpassing $1,600 by 2029, assuming the current growth rate persists.
In summary, McHenry has demonstrated resilience in its housing market, with a recent trend towards increased homeownership despite rising home prices. The interplay between federal interest rates, home prices, and rental rates has shaped the city's housing landscape. As McHenry continues to evolve, its housing market is likely to remain dynamic, balancing the needs of both homeowners and renters in this attractive Illinois community.
