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Rising Home Values and Ownership in The Bush: A Decade of Housing Market Dynamics
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 Bush, a neighborhood in Chicago, Illinois, has experienced significant fluctuations in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the neighborhood's real estate dynamics.
Homeownership in The Bush has shown a general upward trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 32%, which increased to 38% by 2022. This overall increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $47,724, which more than doubled to $121,463 by 2022. This trend suggests that despite rising home prices, more residents were able to become homeowners, possibly due to improved economic conditions or increased desirability of the neighborhood.
The relationship between federal interest rates and homeownership rates in The Bush shows some correlation. From 2013 to 2016, as interest rates remained low (below 0.5%), homeownership increased from 32% to 36%. The trend continued as interest rates gradually rose, with homeownership reaching 39% in 2018 when the federal interest rate was 1.83%. However, even as interest rates dropped significantly in 2020 and 2021, homeownership continued to rise, reaching 42% in 2021. This suggests that while interest rates play a role, other factors such as local economic conditions and housing market dynamics also significantly influence homeownership rates in The Bush.
Renter percentages in The Bush have generally decreased as average rent prices increased. In 2013, 68% of residents were renters, with an average rent of $733. By 2022, the renter percentage had decreased to 62%, while the average rent had risen to $870. This trend suggests that as rents became more expensive, some residents may have transitioned to homeownership or moved to more affordable areas. The population of The Bush also decreased during this period, from 2,667 in 2013 to 2,076 in 2022, which could have impacted the rental market dynamics.
In 2023, the average home price in The Bush decreased to $112,895, a 7% drop from the previous year. This decline continued the downward trend that began in 2022. However, in 2024, the average home price rebounded to $118,249, a 4.7% increase from 2023. The federal interest rate in 2024 is 5.33%, which is significantly higher than in previous years. Despite this high interest rate, the housing market in The Bush appears to be recovering, possibly due to other economic factors or increased demand for housing in the area.
Looking ahead, predictive models suggest that average home prices in The Bush may continue to rise moderately over the next five years, potentially reaching around $130,000 by 2029. This prediction is based on the historical trend of increasing home values in the neighborhood, despite occasional dips. Average rent prices are also expected to continue their upward trajectory, potentially reaching approximately $950 per month by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, The Bush has experienced a notable increase in homeownership rates and average home prices over the past decade, despite fluctuations in federal interest rates. The rental market has seen a decrease in the percentage of renters while average rents have increased. The recent rebound in home prices in 2024, despite high interest rates, suggests a resilient housing market in this Chicago neighborhood. These trends indicate a changing demographic landscape in The Bush, with potential implications for future development and community dynamics.
