Loading Content...
Northlake, Illinois: Rising Home Values and Shifting Ownership Trends in a Compact Urban Area
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Northlake, Illinois, a suburban community in Cook County, is located approximately 13 miles west of downtown Chicago. Over the past decade, this vibrant enclave has experienced significant changes in its housing market and demographic composition, reflecting broader economic trends and local dynamics.
The homeownership rate in Northlake has shown a gradual decline from 2013 to 2022. In 2013, 76% of housing units were owner-occupied, but by 2022, this figure had decreased to 70%. This downward trend in homeownership coincided with a significant increase in average home prices. In 2013, the average home price in Northlake was $102,374. By 2022, it had risen dramatically to $248,950, representing a 143% increase over this period.
The relationship between federal interest rates and homeownership rates in Northlake follows a generally inverse pattern. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 72-73%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate dipped to 70%.
Conversely, the percentage of renters in Northlake has increased from 24% in 2013 to 30% in 2022. This rise in the renter population has been accompanied by an overall increase in average rent prices. In 2013, the average rent was $1,171, which rose to $1,337 by 2022, marking a 14.2% increase. The population of Northlake has remained relatively stable during this period, fluctuating between 16,356 and 17,392 residents, suggesting that changes in the rental market are more likely driven by economic factors rather than significant population shifts.
In 2023 and 2024, the housing market in Northlake continued its upward trajectory. The average home price in 2023 reached $256,309, and further increased to $268,980 in 2024. This represents a 3% and 4.9% year-over-year increase respectively. Concurrently, federal interest rates have risen substantially, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the area.
Looking ahead, based on current trends and economic indicators, we can project potential scenarios for Northlake's housing market over the next five years. Average home prices could potentially reach around $300,000 by 2029, assuming a conservative annual growth rate of 2-3%. Rent prices may continue to rise, potentially reaching an average of $1,500-$1,600 per month by 2029, if the current trend of approximately 2% annual increase persists.
In summary, Northlake has experienced a notable shift in its housing landscape over the past decade. The declining homeownership rate, coupled with rising home prices and rents, suggests a changing demographic and economic profile for the city. These trends, influenced by factors such as interest rates and broader economic conditions, are likely to continue shaping Northlake's housing market in the coming years, potentially affecting affordability and community dynamics.
