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Rising Home Values and Ownership in Springfield's Historic West Side
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
The Historic West Side neighborhood of Springfield, Illinois, has experienced significant changes in its housing market over the past decade. This area has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
Homeownership in the Historic West Side has shown an overall upward trend since 2013. The neighborhood's homeownership rate increased from 58% in 2013 to 61% by 2022, despite a temporary dip to 53% in 2015 and 2016. This rise in homeownership has coincided with a consistent increase in average home prices. From 2010 to 2022, the average home price in the neighborhood rose from $93,137 to $116,661, representing a 25.3% increase over 12 years.
The relationship between federal interest rates and homeownership rates in the Historic West Side has generally been inverse. During periods of low interest rates from 2013 to 2016 (0.09% to 0.4%), homeownership rates initially decreased but then stabilized. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates in the neighborhood actually increased from 55% to 61%. This suggests that local factors may have had a more significant impact on homeownership decisions than national interest rates alone.
Renter percentages in the Historic West Side have fluctuated inversely to homeownership rates. The proportion of renters increased from 42% in 2013 to a peak of 47% in 2015 and 2016, before gradually declining to 39% by 2022. Average rent prices have shown volatility, peaking at $988 in 2013, dropping to $643 in 2017, and then rising to $887 in 2022. These fluctuations could be influenced by factors such as changes in housing stock, local economic conditions, and shifts in the neighborhood's population, which decreased from 8,589 in 2013 to 7,611 in 2022.
In 2023 and 2024, the Historic West Side continued to see growth in average home prices. The average home price reached $123,929 in 2023 and further increased to $128,232 in 2024, representing a 9.9% increase from 2022 to 2024. These price increases occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Predictive models suggest that the Historic West Side may continue to see moderate growth in both average home prices and rent prices over the next five years. Home prices are projected to increase by approximately 3-4% annually, potentially reaching around $150,000 by 2029. Average rent prices are expected to grow at a slightly slower pace, potentially increasing by 2-3% annually, which could bring the average rent to approximately $1,000 by 2029.
In summary, the Historic West Side neighborhood has demonstrated resilience and growth in its housing market. The trend towards increased homeownership, coupled with rising home values, suggests a strengthening community with growing appeal to potential homebuyers. While rent prices have been more volatile, they appear to be stabilizing and growing moderately. These trends, combined with the neighborhood's ability to maintain price growth even in a high interest rate environment, point to a positive outlook for the Historic West Side's real estate market in the coming years.
