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Rising Home Values and Declining Ownership: Rosemont'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
Rosemont, Illinois, is a small but vibrant community located near Chicago's O'Hare International Airport. With a population of 3,139 in 2022, this compact village of just 1.79 square miles has experienced fluctuating homeownership rates and steadily increasing average home and rent prices over the past decade. The village is known for its convention centers, entertainment venues, and proximity to major transportation hubs.
The homeownership rate in Rosemont has shown a declining trend since 2015. In 2015, the percentage of owner-occupied housing units peaked at 37%. However, by 2022, this figure had dropped to 26%. Conversely, average home prices have seen a consistent upward trajectory. In 2015, the average home price was $211,491, which increased to $319,753 by 2022, representing a substantial 51% growth over seven years.
Federal interest rates have played a significant role in homeownership trends. From 2015 to 2021, interest rates remained relatively low, ranging from 0.13% to 1.83%. Despite these favorable borrowing conditions, Rosemont's homeownership rate continued to decline. This suggests that other factors, such as rising home prices or local economic conditions, may have had a stronger influence on homeownership than interest rates alone.
The renter population in Rosemont has grown correspondingly with the decline in homeownership. In 2015, 63% of housing units were renter-occupied, which increased to 74% by 2022. Average rent prices have also risen, though not as dramatically as home prices. In 2015, the average rent was $801 per month, climbing to $934 by 2022, an increase of about 17% over seven years. This rise in rent prices, coupled with the growing renter population, suggests a strong demand for rental properties in the area.
As of 2024, the average home price in Rosemont has reached $333,744, showing continued growth from the 2022 figure. The federal interest rate for 2024 stands at 5.33%, a significant increase from the low rates seen in the previous decade. This higher interest rate environment may impact future homeownership trends and housing affordability in the village.
Looking ahead, based on historical trends and current market conditions, we can expect average home prices in Rosemont to continue their upward trajectory over the next five years. Projections suggest that by 2029, average home prices could reach approximately $400,000 to $425,000. Similarly, average rent prices are likely to maintain their upward trend, potentially reaching $1,100 to $1,200 per month by 2029.
In summary, Rosemont has experienced a significant shift towards a renter-majority community over the past decade, with homeownership rates declining despite rising property values. The village's real estate market has shown resilience and growth, with both home prices and rents increasing steadily. As interest rates rise and housing costs continue to climb, the community may face challenges in maintaining affordability for both homeowners and renters in the coming years.
