Federal interest rates played a crucial role in shaping homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership in Lincoln Park increased from 24% to 28%. This period of low interest rates likely made mortgages more accessible, encouraging home buying. As interest rates began to rise more significantly from 2017 onwards, homeownership continued to increase, reaching 32% by 2022, suggesting other factors such as local economic growth may have supported this trend.

Renter percentages in Lincoln Park have inversely mirrored the homeownership trend, decreasing from 75% in 2013 to 68% in 2022. Despite this decline, average rent prices have shown a consistent upward trajectory, increasing from $896 in 2013 to $1,118 in 2022, representing a 24.8% increase over nine years. This rise in rent prices, coupled with a decreasing percentage of renters, may indicate a shift towards higher-income renters in the neighborhood or increased demand for rental properties despite the growing homeownership rate.

In 2023 and 2024, the Lincoln Park housing market experienced a slight cooling. The average home price decreased from $500,861 in 2022 to $486,743 in 2023, and further to $475,044 in 2024. This decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the softening of home prices by making mortgages more expensive and potentially reducing buyer demand.

Predictive models suggest that average home prices in Lincoln Park may stabilize or experience modest growth over the next five years, assuming interest rates remain relatively high. Average rent prices are expected to continue their upward trend, albeit at a slower pace, potentially reaching around $1,300-$1,400 per month by 2029. These projections are based on historical trends and current market conditions.

In conclusion, Lincoln Park has undergone significant changes in its housing market over the past decade, with notable increases in homeownership rates and average home prices, alongside evolving rental trends. The recent cooling in the housing market, influenced by higher interest rates, marks a shift in the neighborhood's real estate dynamics. These trends will likely continue to shape Lincoln Park's demographic composition and overall character in the coming years.