Loading Content...
Rising Home Values and Shifting Ownership in Deerfield: A Decade of Housing Market Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Deerfield, Illinois, a suburban community located approximately 25 miles north of Chicago, is known for its excellent schools and high quality of life. The village has experienced steady growth in recent years, maintaining a high rate of homeownership while average home prices have shown an overall upward trend despite some fluctuations. Average rent prices have also increased, reflecting the area's desirability and economic stability.
Homeownership rates in Deerfield have remained consistently high, ranging from 86% to 90% between 2013 and 2022. This stability in homeownership coincides with fluctuations in average home prices. In 2013, the average home price was $396,583, rising to a peak of $455,687 in 2017, before experiencing a slight decline to $431,788 in 2019. Despite this dip, prices rebounded strongly, reaching $494,784 in 2022. This overall upward trend in home prices, coupled with the steady homeownership rate, suggests a robust and desirable housing market in Deerfield.
Federal interest rates have played a significant role in shaping homeownership trends in Deerfield. From 2013 to 2016, interest rates remained exceptionally low, hovering around 0.1% to 0.4%. This period coincided with a slight decrease in homeownership from 90% to 87%, possibly due to increased competition in the housing market as low rates made homebuying more accessible. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates stabilized at 86%, indicating a balance between affordability and market demand.
Renter percentages in Deerfield have shown a slight increase over the years, rising from 10% in 2013 to 14% in 2022. This trend has been accompanied by a significant increase in average rent prices. In 2013, the average rent was $1,717, which rose sharply to $2,380 in 2017, representing a 38.6% increase in just four years. However, rent prices have since moderated, settling at $1,995 in 2022. This trend suggests that while renting has become more prevalent, the market has adjusted to maintain affordability for the growing renter population.
In 2023, the average home price in Deerfield reached $519,503, continuing the upward trend observed in previous years. This increase occurred despite a significant rise in federal interest rates to 5.02% in 2023. Moving into 2024, the housing market in Deerfield has shown remarkable resilience, with average home prices further climbing to $554,125. This growth persists even as federal interest rates have increased slightly to 5.33%, demonstrating the strong demand for housing in the area despite higher borrowing costs.
Looking ahead, predictive models suggest that both average home and rent prices in Deerfield are likely to continue their upward trajectory over the next five years. Home prices are projected to increase by approximately 3-5% annually, potentially reaching around $650,000 by 2029. Average rent prices are expected to follow a similar pattern, with annual increases of 2-4%, potentially reaching $2,300 per month by 2029. These projections are based on historical trends, current market conditions, and the assumption of continued economic stability in the region.
In summary, Deerfield has maintained a strong homeownership rate despite fluctuations in average home prices and increasing rent costs. The relationship between federal interest rates and homeownership has been nuanced, with recent years showing resilience in the housing market even as rates have risen. The slight increase in renter percentages, coupled with moderating rent prices, suggests a market adapting to changing demographics and housing preferences. As Deerfield continues to grow, its housing market appears poised for sustained appreciation, making it an attractive location for both homeowners and investors.
