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Rising Home Values and Shifting Ownership in Pleasant Street, DeKalb: A Decade of Housing Market Dynamics
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
Pleasant Street, located in DeKalb, Illinois, has experienced significant changes in its housing landscape over the past decade. This neighborhood has seen fluctuations in homeownership rates and notable shifts in average home and rent prices, reflecting broader economic trends and local market dynamics.
The ownership percentage in Pleasant Street has shown a general decline from 2013 to 2022, while average home prices have steadily increased. In 2013, the neighborhood had a homeownership rate of 51%, which dropped to 37% by 2022. During this same period, average home prices rose from $88,934 in 2016 (the earliest available data) to $134,504 in 2022, representing a 51% increase. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents, pushing more towards renting.
Federal interest rates have played a significant role in shaping homeownership trends in Pleasant Street. The period from 2013 to 2015 saw historically low interest rates, ranging from 0.11% to 0.13%. During this time, homeownership rates in the neighborhood remained relatively stable, around 31-51%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% by 2022, homeownership rates in Pleasant Street declined. This trend aligns with the general understanding that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in Pleasant Street has grown as homeownership has declined. The percentage of renters increased from 49% in 2013 to 63% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $1,447, peaking at $1,618 in 2017 before declining to $1,013 in 2022. This fluctuation in rent prices, combined with the increasing renter population, suggests a complex interplay of factors affecting the rental market, including changes in housing supply, demand, and overall neighborhood demographics.
Looking at the most recent data, average home prices in Pleasant Street continued to rise, reaching $145,982 in 2023 and $163,755 in 2024. This represents a significant 21.7% increase from 2022 to 2024. Simultaneously, federal interest rates have also increased substantially, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with rising home prices, may further impact homeownership rates in the neighborhood.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Pleasant Street will continue to rise, potentially reaching around $200,000 by 2029. Rent prices, which have shown more variability, are projected to stabilize and potentially increase moderately, possibly reaching an average of $1,200-$1,300 per month in the same timeframe.
In summary, Pleasant Street has experienced a clear shift towards a renter-majority neighborhood over the past decade, driven by rising home prices and fluctuating interest rates. The continuous increase in average home prices, coupled with recent spikes in interest rates, suggests that this trend may continue in the near future. However, the rental market's volatility indicates that the neighborhood is still adapting to these changes, potentially offering opportunities for both renters and investors in the coming years.
