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Rising Home Values and Stable Ownership: Bellwood's Resilient Housing Market
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
Bellwood, located in Illinois, is a small suburban community with a rich history and diverse population. Over the past decade, this village has experienced notable shifts in homeownership rates and housing market dynamics. The overall trend shows an increase in homeownership percentage, while average home prices have risen significantly, and average rent prices have fluctuated.
The homeownership rate in Bellwood has seen a substantial increase from 68% in 2018 to 77% in 2022. This upward trend in homeownership coincides with a dramatic rise in average home prices. In 2018, the average home price was $146,753, which steadily climbed to $212,868 by 2022, representing a 45% increase over just four years. This correlation suggests that despite rising home prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or local initiatives promoting homeownership.
Federal interest rates play a crucial role in homeownership trends. From 2018 to 2020, interest rates decreased from 1.83% to 0.38%, which likely contributed to the increase in homeownership from 68% to 72% during this period. The exceptionally low interest rate of 0.08% in 2021 coincided with a further increase in homeownership to 75%, demonstrating how lower interest rates can make mortgages more affordable and encourage home buying.
The rental market in Bellwood has shown an inverse relationship to homeownership trends. The percentage of renters decreased from 32% in 2018 to 23% in 2022. Despite this decline in the renter population, average rent prices have remained relatively stable with some fluctuations. In 2018, the average rent was $1,252, which decreased to $1,175 in 2022, a modest 6% reduction. This stability in rent prices, despite a shrinking renter population, could indicate a balanced rental market or suggest that the remaining rental properties are of higher quality or in more desirable locations.
Looking at the most recent data, the average home price in Bellwood reached $216,415 in 2023 and further increased to $222,301 in 2024. This continued upward trajectory in home prices occurs despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, which are significantly higher than the rates seen in previous years. This suggests a strong housing market that is resilient to higher borrowing costs.
Applying predictive models to forecast the next five years, we can anticipate that average home prices in Bellwood will continue to rise, albeit at a potentially slower rate due to the higher interest rates. The average home price could reach approximately $250,000 by 2029 if the current trend continues. For rent prices, the forecast suggests a possible stabilization or slight increase, potentially reaching an average of $1,250 per month by 2029, assuming economic conditions remain relatively stable.
In summary, Bellwood has experienced a significant shift towards homeownership over the past few years, with a corresponding increase in average home prices. This trend has persisted even in the face of rising interest rates, indicating a robust local housing market. The rental market, while shrinking in terms of population, has maintained relatively stable prices. These trends suggest a community that is increasingly focused on long-term residency and investment in property ownership, which could have positive implications for community stability and local economic growth in the coming years.
