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Oak Forest's Rising Home Values: A Suburban Chicago Housing Market Analysis
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
Oak Forest, Illinois, is a suburban city located approximately 24 miles southwest of Chicago. With a population of 26,580 in 2022 and a land area of 6.07 square miles, Oak Forest boasts a population density of 4,411 people per square mile. The city has experienced a gradual shift in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
From 2013 to 2022, Oak Forest maintained a relatively stable homeownership rate, fluctuating between 76% and 80%. The average home prices in the city have shown a consistent upward trend, increasing from $148,804 in 2013 to $259,618 in 2022, representing a substantial 74.5% growth over this period. This rise in home values has occurred despite minor fluctuations in the homeownership rate, suggesting a robust local housing market.
The relationship between federal interest rates and homeownership rates in Oak Forest appears to follow general economic principles. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, the city maintained a high homeownership rate, averaging around 77-78%. The slight increase in interest rates to 1.68% in 2022 did not significantly impact the homeownership rate, which remained at 79%, indicating the continued affordability and desirability of homeownership in Oak Forest.
Renter percentages in Oak Forest have shown minor fluctuations, ranging from 20% to 24% between 2013 and 2022. The average rent prices have generally increased over this period, rising from $1,319 in 2013 to $1,480 in 2022, a 12.2% increase. However, this growth in rent prices has not been as steep as the increase in home values, potentially making renting an attractive option for some residents, especially as the population has decreased slightly from 28,361 in 2013 to 26,580 in 2022.
In 2023 and 2024, Oak Forest continued to see growth in average home prices. The average home price reached $264,045 in 2023 and further increased to $272,136 in 2024, representing a 3.1% year-over-year growth. This upward trend persists despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, suggesting a resilient housing market in Oak Forest.
Looking ahead, predictive models suggest that Oak Forest may continue to see moderate growth in both average home prices and rent prices over the next five years. Home prices could potentially reach around $300,000 by 2029, while average rent prices might approach $1,600 per month. These projections assume continued economic stability and steady population trends in the city.
In summary, Oak Forest has demonstrated a stable housing market characterized by consistently high homeownership rates and steadily increasing property values. The city has maintained a balance between ownership and rental options, with both sectors showing growth despite minor population declines. The resilience of the housing market in the face of rising interest rates suggests a strong local economy and continued demand for housing in this suburban Chicago community.
