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Rising Home Values and Shifting Ownership in Orland Park: A Suburban Illinois Housing Market Analysis
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Orland Park, located in Illinois, is a suburban community known for its blend of residential areas and commercial development. The city has experienced fluctuating trends in homeownership rates and housing prices over the past decade. From 2013 to 2022, Orland Park saw a gradual decline in homeownership, accompanied by rising average home prices and average rent costs.
The homeownership rate in Orland Park decreased from 90% in 2013 to 87% in 2022. During this same period, average home prices rose significantly, from $231,719 in 2013 to $353,157 in 2022, representing a 52.4% increase. This inverse relationship suggests that as home prices increased, homeownership became less attainable for some residents. The most substantial year-over-year increase in average home prices occurred between 2020 and 2021, jumping from $288,198 to $318,828, a 10.6% rise.
Federal interest rates have played a role in homeownership trends in Orland Park. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained stable at around 90-91%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates started to decline, reaching 88% by 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The percentage of renters in Orland Park increased from 9% in 2013 to 13% in 2022, coinciding with a rise in average rent prices. Average rent increased from $1,339 in 2013 to $1,520 in 2022, a 13.5% increase. The most significant jump in average rent occurred between 2015 and 2016, rising from $1,445 to $1,538, a 6.4% increase in a single year. This trend suggests that as homeownership became less accessible due to rising home prices, more residents turned to renting, driving up demand and subsequently, rental prices.
In 2023, the average home price in Orland Park reached $364,020, continuing the upward trend. The federal interest rate for 2023 was 5.02%, significantly higher than previous years. As of 2024, the average home price has further increased to $377,626, with the federal interest rate rising to 5.33%. These high interest rates may continue to impact homeownership rates in the near future.
Looking ahead, predictive models suggest that average home prices in Orland Park will continue to rise over the next five years, potentially reaching around $425,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,700 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Orland Park has experienced a gradual shift from homeownership to renting over the past decade, driven by rising home prices and fluctuating interest rates. The inverse relationship between homeownership rates and average home prices, coupled with the correlation between federal interest rates and homeownership trends, highlights the complex dynamics of the local housing market. As the city moves forward, balancing housing affordability with market growth will likely be a key challenge for policymakers and residents alike.
