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Rising Home Values and Shifting Ownership in Oaklawn Fairweight, Danville
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
Oaklawn Fairweight, a neighborhood in Danville, Illinois, has experienced significant changes in its housing market over the past decade. This area has seen a gradual shift from a predominantly owner-occupied neighborhood to a more balanced mix of owners and renters, while both average home prices and average rent have generally increased over time. The relationship between homeownership percentages and average home prices in Oaklawn Fairweight reveals some interesting trends. In 2013, the neighborhood had a homeownership rate of 57%, with an average home price of $14,409. As average home prices steadily increased, reaching $25,450 by 2022, the homeownership rate declined to 49%. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents. For instance, between 2013 and 2022, average home prices increased by approximately 76%, while the homeownership rate decreased by 8 percentage points.
Federal interest rates have played a role in shaping homeownership trends in Oaklawn Fairweight. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, fluctuating between 51% and 57%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a gradual decline, dropping from 56% in 2017 to 49% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in Oaklawn Fairweight has shown an upward trend as homeownership rates declined. In 2013, 43% of the neighborhood's residents were renters, with an average rent of $733. By 2022, the renter percentage increased to 51%, while the average rent rose to $774. This represents a 5.6% increase in average rent over the period. Interestingly, the neighborhood's population decreased from 6,048 in 2013 to 4,808 in 2022, which may have influenced the rental market dynamics. Despite the population decrease, the rising renter percentage suggests a shift in housing preferences or affordability constraints in the area.
In 2023 and 2024, Oaklawn Fairweight has continued to see growth in average home prices. The average home price in 2023 was $27,801, representing a 9.2% increase from 2022. In 2024, the average home price further increased to $29,131, a 4.8% rise from the previous year. Concurrently, federal interest rates have remained relatively high, at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may continue to impact homeownership decisions in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Oaklawn Fairweight are likely to continue their upward trajectory over the next five years. Based on the historical data and current trends, average home prices could potentially reach around $35,000 to $40,000 by 2029. Average rent prices are also expected to increase, albeit at a more modest pace. Projections indicate that average rent could rise to approximately $850 to $900 per month within the next five years.
In summary, Oaklawn Fairweight has experienced a gradual shift towards a more balanced mix of homeowners and renters over the past decade. The neighborhood has seen substantial increases in average home prices, which have coincided with a decline in homeownership rates. Rising federal interest rates have likely contributed to this trend. Meanwhile, the rental market has expanded, with both the percentage of renters and average rent prices increasing. As the neighborhood continues to evolve, it will be important to monitor these housing market dynamics and their impact on the community's composition and affordability.
