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Palos Hills, Illinois: A Decade of Home Value Growth and Stable Ownership in a Suburban Setting
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
Palos Hills, a city in Illinois, is known for its suburban charm and proximity to Chicago. Over the past decade, this community has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
Homeownership in Palos Hills has remained relatively stable, with a slight downward trend. In 2013, the city boasted an 81% homeownership rate, which gradually decreased to 80% by 2022. This minor decline coincided with a significant increase in average home prices. In 2013, the average home price in Palos Hills was $147,108, which steadily rose to $236,337 by 2022, representing a substantial 60.7% increase over nine years.
The relationship between federal interest rates and homeownership rates in Palos Hills follows a generally expected pattern. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 0.4%, homeownership rates stayed relatively high, between 78% and 81%. However, the slight decrease in homeownership from 81% in 2013 to 80% in 2022 occurred despite these low interest rates, suggesting other factors influencing the local housing market.
Renter occupancy in Palos Hills has shown a marginal increase, moving from 19% in 2013 to 20% in 2022. This shift corresponds with changes in average rent prices. In 2013, the average rent was $1,234, which peaked at $1,238 in 2014 before gradually declining to $1,178 in 2022. This 4.5% decrease in average rent over nine years, coupled with the slight increase in renter occupancy, indicates a potentially more affordable rental market attracting a modest influx of renters.
In 2023 and 2024, Palos Hills has seen continued growth in average home prices, reaching $243,479 in 2023 and $255,383 in 2024. This upward trend persists despite the significant increase in federal interest rates to 5.02% in 2023 and 5.33% in 2024, suggesting strong demand in the local housing market that outweighs the impact of higher borrowing costs.
Looking ahead, predictive models suggest a continued upward trajectory for average home prices in Palos Hills over the next five years. Based on historical trends, average home prices could potentially reach around $300,000 by 2029. Average rent prices, which have shown more volatility, are predicted to stabilize and potentially increase slightly, possibly reaching around $1,250 by 2029.
In summary, Palos Hills has maintained a high rate of homeownership despite rising home prices and recent increases in interest rates. The rental market has seen a slight increase in occupancy alongside a modest decrease in average rents. These trends reflect a resilient housing market in Palos Hills, with homeownership remaining attractive despite economic fluctuations, and a rental market that has become slightly more accessible over time.
