The rental market in La Grange has shown an inverse relationship to homeownership trends. As homeownership increased, the percentage of renters decreased from 25% in 2013 to 19% in 2022. Average rent prices have fluctuated over this period. In 2013, the average rent was $600, which increased to $664 by 2019. However, there was a decrease to $612 in 2021, followed by an increase to $663 in 2022. These fluctuations in rent prices may be influenced by changes in population, which peaked at 1,876 in 2014 and decreased to 1,646 by 2022.

In 2023, the average home price in La Grange was $150,444, showing a slight decrease from the previous year. However, in 2024, the average home price has risen to $153,263, indicating a recovery in the housing market. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability.

Looking ahead, based on the observed trends and current economic conditions, we can forecast potential 5-year trends for average home and rent prices. Average home prices are likely to continue a moderate upward trajectory, potentially reaching around $165,000 to $170,000 by 2029. Average rent prices may also see a gradual increase, potentially reaching $700 to $725 per month in the same timeframe, assuming stable economic conditions and continued population growth.

In summary, La Grange has experienced a notable increase in homeownership rates over the past decade, coupled with rising average home prices. The rental market has seen a corresponding decrease in the percentage of renters, with fluctuating average rent prices. Recent increases in federal interest rates may influence future housing market dynamics, potentially slowing the rate of homeownership growth and impacting both home prices and rental rates in the coming years.