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Rising Home Values and Declining Ownership: Beach Park's Dynamic Housing Market
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
Beach Park, located in Illinois, is a suburban community with a population of 19,758 as of 2022. This village has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market conditions. The homeownership rate in Beach Park has shown a general downward trend from 2013 to 2022. In 2013, the homeownership rate was 80%, which declined to 70% by 2022. This shift coincides with changes in average home prices, which have seen significant growth over the same period. The average home price in Beach Park increased from $123,508 in 2013 to $237,119 in 2022, representing a substantial 92% increase over nine years.
The relationship between federal interest rates and homeownership rates in Beach Park demonstrates some correlation. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 2.16%, homeownership rates initially remained stable around 77-80%. However, despite the low interest rates, there was a gradual decline in homeownership, possibly due to rising home prices outpacing income growth. The sharp increase in interest rates to 1.68% in 2022 coincided with a more pronounced drop in homeownership to 70%, suggesting that higher borrowing costs may have impacted affordability and homebuying decisions.
Conversely, the percentage of renters in Beach Park increased from 20% in 2013 to 30% in 2022. This rise in renters correlates with an overall increase in average rent prices. The average rent rose from $1,353 in 2013 to $1,384 in 2022, an increase of about 2.3%. However, it's worth noting that rent prices fluctuated during this period, peaking at $1,530 in 2017 before declining and then rising again. The increase in renters despite relatively stable rent prices may indicate other factors influencing housing choices, such as job market conditions or lifestyle preferences.
In 2023 and 2024, Beach Park continued to see growth in average home prices. The average home price reached $248,023 in 2023 and further increased to $261,497 in 2024. This represents a 10.3% increase from 2022 to 2024. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting housing affordability and market dynamics.
Looking ahead, predictive models suggest that average home prices in Beach Park may continue to rise over the next five years, potentially reaching around $300,000 by 2029 if current trends persist. Average rent prices are also expected to increase, potentially surpassing $1,500 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Beach Park has experienced a shift towards more renters and fewer homeowners over the past decade, coinciding with substantial increases in average home prices. While rent prices have shown more modest growth, the trend towards renting appears to be gaining momentum. The recent sharp increases in interest rates and continued growth in home prices suggest that affordability may remain a key factor shaping the local housing market in the coming years.
