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Melrose Park: Home Values Double Amid Modest Ownership Growth
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
Melrose Park, located in Illinois, is a vibrant community known for its rich cultural diversity and strong industrial heritage. Over the past decade, this suburb of Chicago has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Melrose Park has shown resilience, with a slight upward trend in recent years. In 2013, 57% of residents owned their homes, and by 2022, this figure had increased to 60%. This rise in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $128,451, which steadily climbed to $268,487 by 2022, representing a substantial 109% increase over this period. The relationship between federal interest rates and homeownership rates in Melrose Park demonstrates some interesting patterns. As interest rates remained low between 2013 and 2016, ranging from 0.11% to 0.4%, homeownership rates fluctuated slightly but remained relatively stable around 55-57%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates actually increased to 60%. This suggests that local factors and the overall housing market conditions may have had a stronger influence on homeownership than interest rates alone during this period.
Renter percentages in Melrose Park have inversely mirrored the homeownership trends, decreasing from 43% in 2013 to 40% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trajectory. In 2013, the average rent was $1,062, which increased to $1,110 by 2022, representing a 4.5% rise. It's worth noting that rent prices experienced some fluctuations during this period, with a peak of $1,191 in 2021 before slightly decreasing in 2022.
Looking at the most recent data, the average home price in Melrose Park reached $270,228 in 2023 and further increased to $280,454 in 2024. This continued upward trend in home prices occurred despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, indicating strong local demand and potentially limited housing supply.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Melrose Park will continue to rise, potentially reaching around $320,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the ongoing demand for housing in the area. For rent prices, we expect a more moderate increase, with average rents potentially reaching approximately $1,250 by 2029, reflecting the balance between housing demand and affordability concerns.
In summary, Melrose Park has demonstrated a strengthening homeownership market over the past decade, with rising home values and a gradual increase in the proportion of homeowners. The rental market, while experiencing some fluctuations, has also seen overall growth in prices. These trends suggest a robust and dynamic housing market in Melrose Park, with potential for continued growth in both home values and rental rates in the coming years.
