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Rising Home Values and High Ownership Rates: Machesney Park's Resilient 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
Machesney Park, located in Illinois, is a community that has experienced interesting demographic and housing market shifts over the past decade. The city, covering 13.03 square miles, has maintained a relatively stable homeownership rate while witnessing fluctuations in average home prices and average rent costs.
From 2013 to 2022, Machesney Park saw a slight increase in homeownership rates, rising from 80% to 81%. During this same period, average home prices showed a significant upward trend. In 2013, the average home price was $84,271, which steadily increased to $150,678 by 2022, representing a substantial 78.8% increase over nine years. This trend suggests that despite rising home prices, residents of Machesney Park have maintained a strong preference for homeownership.
The relationship between federal interest rates and homeownership rates in Machesney Park presents an interesting case. Despite historically low interest rates from 2013 to 2021, ranging from 0.08% to 0.14%, the homeownership rate remained relatively stable, only increasing by 1 percentage point. This suggests that factors beyond interest rates, such as local economic conditions or housing supply, may have played a more significant role in homeownership decisions in this community.
Renter percentages in Machesney Park have shown a slight decline, decreasing from 22% in 2015 to 19% in 2022. Interestingly, average rent prices have fluctuated during this period. In 2013, the average rent was $1,042, which decreased to $986 in 2017 before rising again to $1,040 in 2022. This represents a relatively modest overall change in average rent prices compared to the more dramatic increases seen in average home prices.
As of 2024, the average home price in Machesney Park has reached $173,425, continuing the upward trend observed in previous years. This represents a 15% increase from the 2022 average price of $150,678. The federal interest rate for 2024 stands at 5.33%, significantly higher than the rates seen in the previous decade, which may impact future homebuying decisions in the community.
Looking ahead, predictive models suggest that average home prices in Machesney Park are likely to continue their upward trajectory over the next five years. Based on historical trends, we can expect average home prices to potentially reach or exceed $200,000 by 2029. Average rent prices, which have shown more modest increases, are projected to continue rising gradually, potentially reaching around $1,200 per month in the same timeframe.
In summary, Machesney Park has demonstrated resilience in maintaining high homeownership rates despite significant increases in average home prices. The community has experienced more stability in its rental market, with modest fluctuations in both renter percentages and average rent prices. As interest rates rise and home prices continue to climb, it will be crucial to monitor how these factors impact the local housing market and homeownership trends in the coming years.
