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Park Ridge, Illinois: Rising Home Values and Strong Ownership in a Chicago Suburb
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
Park Ridge, Illinois, is a vibrant suburban city located northwest of Chicago. Known for its charming downtown area and excellent schools, Park Ridge has experienced notable shifts in homeownership rates and housing prices over the past decade. The city has maintained a strong preference for owner-occupied housing, with ownership rates consistently above 79% since 2013. Meanwhile, average home prices and average rent have shown an overall upward trend, reflecting the city's desirability and economic growth.
The relationship between homeownership rates and average home prices in Park Ridge reveals an interesting dynamic. In 2013, the homeownership rate stood at 82% with an average home price of $342,495. As average home prices increased to $417,687 by 2018, there was a slight decrease in homeownership to 79%. However, this trend reversed in recent years, with homeownership rising to 84% in 2022 despite average home prices reaching $483,887. This suggests that Park Ridge residents have maintained a strong ability to purchase homes even as prices have risen, possibly due to strong local economic conditions or demographic shifts favoring homeownership.
Federal interest rates have played a significant role in homeownership trends in Park Ridge. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which coincided with relatively stable homeownership rates around 79-82%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates remained steady at 79-80%. Interestingly, the sharp drop in interest rates to 0.08% in 2021 corresponded with an increase in homeownership to 84%, suggesting that lower rates may have encouraged more residents to purchase homes.
Renter percentages and average rent prices in Park Ridge have shown some fluctuation over the years. In 2013, 18% of residents were renters, with an average rent of $1,342. The renter percentage peaked at 21% in 2017, coinciding with an increase in average rent to $1,508. However, by 2022, the renter percentage had decreased to 16%, while average rent continued to rise to $1,601. This trend suggests that despite increasing rent prices, Park Ridge has become increasingly favorable for homeownership, possibly due to factors such as local economic growth or changes in housing supply.
In 2023 and 2024, Park Ridge has seen further increases in average home prices, reaching $496,528 in 2023 and $511,840 in 2024. This represents a significant jump from the 2022 average of $483,887. Concurrently, federal interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the near-zero rates of the early 2020s. These higher interest rates may impact homebuying affordability, potentially influencing future homeownership trends in the city.
Looking ahead, predictive models suggest that average home prices in Park Ridge are likely to continue their upward trajectory over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices are also expected to increase, though the rate of increase may slow if homeownership remains attractive and new rental supply enters the market. The city's strong schools and proximity to Chicago are likely to maintain its appeal, supporting ongoing demand for both owned and rented housing.
In summary, Park Ridge has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing property values. The city has shown resilience in maintaining strong homeownership levels even as average home prices and interest rates have risen. The interplay between federal interest rates, local economic conditions, and housing preferences will continue to shape Park Ridge's real estate landscape in the coming years.
