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McKinley Park: Rising Home Values and Ownership Trends in Chicago's Industrial Heritage Neighborhood
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
McKinley Park, 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 rich industrial history, has seen significant changes in homeownership rates and property values. The neighborhood has generally trended towards increased homeownership and rising average home prices, while average rent prices have shown more variability.
The trend in homeownership in McKinley Park has been predominantly upward. In 2013, the homeownership rate stood at 55%, but by 2022, it had increased significantly to 67%. This 12 percentage point increase coincided with a substantial rise in average home prices. In 2013, the average home price was $163,555, and by 2022, it had climbed to $297,879, representing an impressive 82% increase over nine years. This trend suggests a growing desirability of the neighborhood for homeowners, possibly due to community improvements or changing perceptions of the area.
The relationship between federal interest rates and homeownership rates in McKinley Park shows an interesting pattern. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 0.4%), homeownership rates increased gradually rather than dramatically. This suggests that while low interest rates may have contributed to the trend, other local factors likely played a significant role in driving homeownership growth.
Renter percentages in McKinley Park have correspondingly decreased as homeownership increased. In 2013, renters occupied 45% of housing units, which decreased to 33% by 2022. Interestingly, average rent prices showed more volatility than home prices. The average rent was $937 in 2013, dipped to $898 in 2016, and then rose to $933 by 2022. The most dramatic increase occurred in 2021 when average rent spiked to $1,139, before returning to previous levels. This fluctuation in rent prices, particularly the 2021 spike, may be attributed to short-term market disruptions or changes in the local rental inventory.
Looking at the most recent data, the average home price in McKinley Park continued its upward trajectory, reaching $300,242 in 2023 and $312,686 in 2024. This represents a 5% increase from 2022 to 2024, indicating a steady appreciation in property values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically discourage home buying, the continued rise in home prices suggests strong underlying demand in the McKinley Park housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in McKinley Park will continue to appreciate, albeit at a potentially slower rate due to higher interest rates. Projections suggest average home prices could reach approximately $350,000 to $375,000 by 2029. Average rent prices are expected to stabilize and potentially see modest increases, possibly reaching around $1,000 to $1,100 per month in the same timeframe.
In summary, McKinley Park has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The neighborhood has shown resilience in its housing market, with home prices continuing to appreciate even in the face of rising interest rates. While rent prices have been more volatile, they have generally remained stable with occasional spikes. These trends suggest that McKinley Park is becoming an increasingly attractive area for homeowners, potentially driven by neighborhood improvements and broader economic factors in Chicago.
