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Northside, Wheaton: High Homeownership and Rising Property Values Amidst Interest Rate Fluctuations
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
Northside, a vibrant neighborhood in Wheaton, Illinois, has experienced dynamic shifts in homeownership and housing prices over the past decade. This area, known for its close-knit community and proximity to local amenities, has seen fluctuations in ownership percentages and significant changes in average home and rent prices.
The homeownership rate in Northside has shown a general upward trend from 2013 to 2022. In 2013, the ownership rate was 79%, which increased to 85% by 2017, the highest point in the observed period. However, there was a slight decline to 81% by 2022. This trend coincides with changes in average home prices. In 2013, the average home price was $452,475, which rose to $573,428 by 2022, representing a 26.7% increase over nine years.
Federal interest rates have played a crucial role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), homeownership in Northside increased from 79% to 81%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, the homeownership rate stabilized around 81-83%, suggesting a potential correlation between rising interest rates and a plateau in homeownership.
Renter percentages in Northside have inversely mirrored homeownership rates, declining from 21% in 2013 to 19% in 2022. Interestingly, average rent prices have shown significant volatility. In 2013, the average rent was $1,412, which dropped to a low of $1,019 in 2018 before rising again to $1,393 in 2022. This fluctuation in rent prices doesn't show a clear correlation with the renter percentage, suggesting that other factors, such as local economic conditions or housing supply, may have influenced rent prices more strongly than demand from renters.
In 2023 and 2024, we've seen a continuation of the upward trend in average home prices. The average home price in Northside reached $591,739 in 2023 and further increased to $633,858 in 2024, representing a 7.1% and 10.5% year-over-year increase, respectively. This significant jump in home prices coincides with a sharp rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. Despite these high interest rates, which typically discourage home buying, the continued rise in home prices suggests strong demand in the Northside neighborhood.
Looking ahead, predictive models forecast a continued increase in average home prices over the next five years, albeit at a potentially slower rate due to the high interest rate environment. Average rent prices are also expected to rise, possibly at a faster rate than in recent years, as high home prices may push more residents towards renting. However, the exact trajectory will depend on various factors, including economic conditions, local development, and potential changes in interest rates.
In summary, Northside has demonstrated resilience in its housing market, with a general trend towards increased homeownership and rising home values over the past decade. The neighborhood has weathered fluctuations in rent prices and maintained a strong owner-occupied housing base. The recent sharp increases in both home prices and interest rates present a unique dynamic that will likely shape the neighborhood's housing landscape in the coming years.
