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Rising Home Values and Shifting Ownership in Longwood Manor, Chicago
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
Longwood Manor, a neighborhood in Chicago, Illinois, has experienced notable shifts in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Longwood Manor has shown a gradual decline from 2013 to 2022. In 2013, 79% of residents owned their homes, while by 2022, this figure had decreased to 76%. Despite this overall downward trend, there were periods of stability and even slight increases. For instance, the ownership rate peaked at 82% in 2015 before beginning its descent.
Interestingly, the trend in average home prices has not always aligned with the homeownership rate. In 2013, when ownership was at 79%, the average home price was $71,218. By 2022, despite the lower ownership rate of 76%, the average home price had risen significantly to $181,715. This represents a substantial increase of 155% over nine years, indicating strong appreciation in property values despite the slight decline in homeownership.
The relationship between federal interest rates and homeownership rates in Longwood Manor shows some correlation. For example, when interest rates were at historic lows between 2013 and 2015 (ranging from 0.11% to 0.13%), homeownership rates were at their highest, peaking at 82% in 2015. As interest rates began to rise more significantly from 2016 onwards, we see a corresponding decline in homeownership rates, reaching 76% by 2022 when the federal interest rate was 1.68%.
Renter percentages in Longwood Manor have generally increased as homeownership rates declined. In 2013, 21% of residents were renters, and by 2022 this had risen to 24%. The average rent prices, however, have not shown a consistent upward trend. In 2013, the average rent was $1,261, and it fluctuated over the years, reaching $1,148 in 2022. The highest average rent was recorded in 2021 at $1,386, coinciding with a renter percentage of 26%.
Looking at the most recent data, in 2023, the average home price in Longwood Manor was $173,162, showing a slight decrease from 2022. This trend continued into 2024, with the average home price further declining to $171,805. Interestingly, these price decreases occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This suggests that other local market factors may be influencing home prices in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Longwood Manor may continue to experience moderate growth, albeit at a slower pace than the rapid appreciation seen in the early 2020s. The average rent prices are expected to remain relatively stable with potential for slight increases, reflecting the ongoing demand for rental properties in the area.
In summary, Longwood Manor has demonstrated resilience in its housing market, with significant appreciation in average home prices despite a slight decrease in homeownership rates. The rental market has shown stability with fluctuating average rents. Recent data indicates a slight cooling in the housing market, potentially offering opportunities for both buyers and renters in the coming years. The interplay between interest rates, homeownership, and property values will continue to shape the neighborhood's housing landscape in the near future.
