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Rising Home Values and Shifting Ownership in Lombard: A Lilac Village's Real Estate Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lombard, located in Illinois, is a charming suburban community known for its annual Lilac Festival, earning it the nickname "The Lilac Village." This analysis examines the trends in homeownership, average home prices, and average rent prices in Lombard from 2013 to 2022. Overall, the city has experienced a slight decrease in homeownership, while average home prices and average rent prices have shown steady growth.
The homeownership rate in Lombard has experienced a modest decline over the analyzed period. In 2013, 74% of housing units were owner-occupied. This percentage remained relatively stable until 2017, after which it began to decrease gradually. By 2022, the homeownership rate had dropped to 72%. Concurrently, average home prices in Lombard have shown a consistent upward trend. In 2013, the average home price was $207,347. This figure rose steadily, reaching $319,329 in 2022, representing a substantial increase of 54% over the nine-year period.
The relationship between federal interest rates and homeownership rates in Lombard appears to follow established trends. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), homeownership rates remained stable at 74-75%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, there was a corresponding decrease in homeownership rates to 72%. This aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Lombard has increased slightly over the years, from 25% in 2013 to 28% in 2022. This trend coincides with a steady rise in average rent prices. In 2013, the average rent was $1,385 per month. By 2022, it had increased to $1,557, representing a 12.4% increase over the nine-year period. The population of Lombard has remained relatively stable during this time, growing from 51,087 in 2013 to 51,461 in 2022, which suggests that the increase in rental rates may be more influenced by market factors than population growth.
In 2023, the average home price in Lombard reached $328,108, and in 2024, it further increased to $346,995. This represents a significant jump of 8.7% from 2022 to 2024. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since 2007. These higher interest rates may impact future homeownership trends in the area.
Looking ahead, based on the observed trends, we can project that average home prices in Lombard will continue to rise over the next five years, potentially reaching around $400,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,800 per month within the same timeframe. However, the rate of increase for both may slow down if high interest rates persist, potentially affecting affordability and demand.
In summary, Lombard has experienced a slight shift towards renting, with homeownership rates decreasing from 74% to 72% between 2013 and 2022. Despite this, average home prices have shown robust growth, increasing by 54% over the same period. Average rent prices have also risen, albeit at a slower pace of 12.4%. The recent sharp increase in interest rates, coupled with continued growth in home prices, may present challenges for potential homebuyers in the coming years, potentially further influencing the balance between homeownership and renting in Lombard.
