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Old Town's Rising Home Values: A Decade of Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Old Town, a historic Chicago neighborhood, has experienced notable changes in its real estate market over the past decade. This analysis examines the fluctuations in homeownership rates, average home prices, and rental trends from 2013 to 2024.
Homeownership rates in Old Town have varied between 42% and 48% from 2013 to 2022. Starting at 46% in 2013, the rate decreased to 42% by 2015, then rose to 48% in 2018 and 2019, before settling at 44% in 2022. Concurrently, average home prices showed an overall upward trend. In 2010, the average home price was $346,384, which decreased to $304,969 in 2012 before steadily increasing to $396,391 in 2018. After a slight decline, prices stabilized around $383,000 in recent years.
Federal interest rates have influenced homeownership trends in Old Town. During the period of historically low rates between 2010 and 2015 (0.09% to 0.18%), homeownership rates initially decreased. As interest rates began to rise from 2016 onwards, reaching 1.83% in 2018, homeownership rates increased to 48% in 2018 and 2019. This suggests that local factors may have had a stronger influence on homeownership decisions than interest rates alone.
Renter percentages in Old Town have mirrored homeownership trends, ranging from 52% to 58% between 2013 and 2022. The highest percentage of renters was 58% in 2015, coinciding with the lowest homeownership rate. Average rent prices have consistently increased, rising from $1,424 in 2013 to $1,803 in 2022, a 26.6% increase over nine years. This increase occurred alongside population growth, with the neighborhood's population rising from 10,983 in 2013 to 13,244 in 2022, potentially contributing to increased rental demand.
In 2023, the average home price in Old Town decreased slightly to $374,483, while interest rates rose sharply to 5.02%. As of 2024, the average home price has rebounded to $382,592, with interest rates further increasing to 5.33%. These higher interest rates may impact future homeownership trends in the neighborhood.
Predictive models suggest that average home prices in Old Town may continue to appreciate moderately over the next five years, potentially reaching around $400,000 by 2029. Average rent prices are also expected to maintain their upward trajectory, potentially surpassing $2,000 per month within the same timeframe, assuming current economic conditions and neighborhood development patterns persist.
In conclusion, Old Town has demonstrated resilience in its real estate market, with homeownership rates remaining relatively stable despite fluctuations in average home prices and interest rates. The consistent rise in average rent prices, coupled with population growth, indicates a strong rental market in the area. As the neighborhood continues to evolve, these trends suggest that Old Town will likely remain an attractive location for both homeowners and renters in the coming years.
