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Princeton Park: Rising Home Values Amid Declining Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Princeton Park, a Chicago neighborhood, has experienced significant changes in its housing market over the past decade. The area has seen a notable decline in homeownership rates coupled with a substantial increase in average home values. This inverse relationship has reshaped the residential landscape of the neighborhood.
From 2013 to 2022, Princeton Park witnessed a steady decrease in owner-occupied homes, dropping from 24% to 14%. Simultaneously, average home prices surged dramatically, rising from $41,156 in 2013 to $139,971 in 2022, marking a 240% increase over nine years. This stark contrast suggests that escalating home prices may have made homeownership less attainable for many residents.
Federal interest rates have played a significant role in shaping homeownership trends in Princeton Park. Between 2013 and 2016, when interest rates were historically low (0.11% to 0.40%), homeownership rates remained relatively stable at around 22-24%. However, as interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply, falling to 14% by 2022. This trend aligns with the general expectation that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership declined, the percentage of renters in Princeton Park increased from 76% in 2013 to 86% in 2022. This shift towards renting coincided with a steady rise in average rent prices. In 2013, the average rent was $954, which increased to $1,126 by 2022, representing an 18% increase over nine years. The population of Princeton Park decreased from 2,602 in 2013 to 2,194 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, Princeton Park experienced some changes in the housing market. The average home price in 2023 was $130,796, showing a slight decrease from 2022. However, in 2024, the average home price rebounded to $135,156. This occurred against the backdrop of significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on historical trends and current market conditions, we can project some potential outcomes for Princeton Park over the next five years. Average home prices may continue to rise, but at a more moderate pace, potentially reaching around $150,000 by 2029. Average rent prices could also continue their upward trajectory, possibly surpassing $1,300 per month within the same timeframe.
In summary, Princeton Park has undergone significant changes in its housing landscape over the past decade. The neighborhood has seen a substantial decrease in homeownership rates, coupled with a dramatic increase in average home prices. Simultaneously, the rental market has expanded, with rising average rent prices. These trends, influenced by factors such as federal interest rates and population changes, have reshaped the residential profile of Princeton Park.
