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Mount Prospect's Housing Market: Rising Home Values and Shifting Ownership Trends
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
Mount Prospect, Illinois, a village in Cook County located 22 miles northwest of downtown Chicago, has experienced significant changes in its housing market over the past decade. With a population of 62,086 in 2022, this suburban community has maintained a strong homeownership rate while seeing notable increases in average home prices and rent costs.
The homeownership rate in Mount Prospect has remained relatively stable, decreasing slightly from 72% in 2013 to 68% in 2022. During this period, average home prices in the village have shown a general upward trend. In 2013, the average home price was $238,608, which increased to $361,311 by 2022, representing a 51.4% rise over nine years. This trend suggests that despite the increasing property values, Mount Prospect has managed to maintain a high rate of homeownership.
Federal interest rates have influenced homeownership trends in Mount Prospect. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), the village saw a slight decrease in homeownership from 72% to 68%. However, the rate stabilized at 68% from 2016 to 2022, even as interest rates fluctuated. This stability in homeownership, despite rising home prices, may be attributed to the overall low interest rate environment during this period, which kept mortgages relatively affordable for many buyers.
The renter population in Mount Prospect has seen a modest increase, from 28% in 2013 to 32% in 2022. Correspondingly, average rent prices have risen from $1,166 in 2013 to $1,412 in 2022, an increase of 21.1% over nine years. This growth in both renter percentage and rent prices could indicate a growing demand for rental properties in the village, possibly driven by factors such as job market changes or demographic shifts.
In 2023, the average home price in Mount Prospect reached $373,881, with federal interest rates at 5.02%. Moving into 2024, the average home price further increased to $393,925, while interest rates rose slightly to 5.33%. These figures demonstrate a continued upward trajectory in home values, even in the face of higher interest rates, suggesting strong demand for housing in the village.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in Mount Prospect could potentially reach around $450,000 to $475,000 within the next five years. Average rent prices might increase to approximately $1,600 to $1,700 per month in the same period. These projections assume a continuation of current economic conditions and local market factors.
In summary, Mount Prospect has maintained a strong homeownership base despite rising property values. The village has experienced significant growth in both home prices and rent costs over the past decade, with recent data showing this trend continuing into 2024. The stability in homeownership rates, coupled with increasing property values and rent prices, suggests that Mount Prospect remains an attractive location for both homeowners and renters, with a housing market that has shown resilience and growth.
