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Peterson Park: Rising Home Values and Ownership Trends in a Quiet Chicago Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Peterson Park, a quiet residential neighborhood in Chicago, Illinois, has experienced notable changes in homeownership rates and housing prices over the past decade. From 2013 to 2022, the community saw an increase in owner-occupied housing from 62% to 68%. During this period, average home prices steadily rose, while average rent prices also increased at a more moderate pace. The relationship between homeownership percentages and average home prices in Peterson Park reveals an interesting dynamic. In 2013, with a 62% homeownership rate, the average home price was $264,186. As homeownership peaked at 70% in 2020, average home prices reached $370,378, indicating a positive correlation. However, this trend wasn't entirely consistent. For example, in 2017, despite a decrease in homeownership to 56%, average home prices continued to rise, reaching $342,622. This suggests that other factors, such as overall market conditions and neighborhood desirability, also significantly influence home value appreciation.
Federal interest rates have played a crucial role in Peterson Park's homeownership rates. From 2013 to 2020, historically low interest rates ranging from 0.09% to 0.38% coincided with an overall increase in homeownership from 62% to 70%. The accessibility of affordable financing likely contributed to this trend. However, as interest rates rose more sharply to 1.68% in 2022, homeownership slightly decreased to 68%, suggesting that higher borrowing costs may have deterred some potential buyers.
Renter percentages and average rent prices in Peterson Park have shown an inverse relationship to homeownership trends. As the percentage of renters decreased from 38% in 2013 to 32% in 2022, average rent prices increased from $1,160 to $1,453. This upward pressure on rent prices could be attributed to a combination of factors, including limited rental supply as more units became owner-occupied, and overall appreciation of property values in the area. The population of Peterson Park has fluctuated during this period, with a notable decrease from 1,670 in 2013 to 1,415 in 2022, which may have also influenced the rental market dynamics.
In 2023 and 2024, Peterson Park continued to see growth in average home prices. The average home price in 2023 was $430,194, and in 2024 it further increased to $449,450. This represents a significant jump from the 2022 average of $422,661. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis. These higher interest rates may impact future homebuying activity in the neighborhood.
Looking ahead, based on the historical data and current trends, we can forecast the following 5-year trends for Peterson Park: Average home prices are projected to continue their upward trajectory, potentially reaching around $525,000 by 2029, assuming a consistent growth rate similar to recent years. Average rent prices are expected to increase at a moderate pace, potentially reaching approximately $1,700 per month by 2029, factoring in historical appreciation and inflation.
In summary, Peterson Park has demonstrated resilience in its housing market, with increasing homeownership rates and rising property values over the past decade. The interplay between interest rates, homeownership, and rental markets has shaped the neighborhood's housing landscape. While recent sharp increases in interest rates may pose challenges for potential homebuyers, the continued appreciation of home values suggests ongoing demand for housing in this Chicago neighborhood. The community's ability to maintain a balance between owner-occupied and rental properties will be crucial in sustaining its appeal to diverse residents in the coming years.
