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Rising Home Values and Stable Ownership: Highland Park'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
Highland Park, Illinois, located in the Chicago metropolitan area, is a picturesque suburban city known for its affluent neighborhoods and high-quality schools. With a population of 30,409 in 2022, this community has experienced stable homeownership rates and increasing average home and rent prices over the past decade. The city's real estate market has shown resilience and growth, reflecting its desirable location and amenities.
Homeownership rates in Highland Park have remained consistently high, with a slight upward trend from 82% in 2013 to 85% in 2022. This increase in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $460,141, which steadily climbed to $601,856 by 2022, representing a 30.8% increase over nine years. This trend suggests a strong correlation between rising property values and the desire for homeownership in the area.
The relationship between federal interest rates and homeownership rates in Highland Park appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.4%), homeownership rates increased from 82% to 83%. However, Highland Park's homeownership rates continued to rise even as interest rates increased in subsequent years, indicating that other factors such as the city's desirability and strong local economy may have a more significant influence on homeownership decisions in this affluent community.
Renter percentages in Highland Park have slightly decreased from 18% in 2013 to 15% in 2022, inversely mirroring the increase in homeownership. Despite this decrease, average rent prices have shown a substantial increase. In 2013, the average rent was $1,452, which rose to $1,882 by 2022, marking a 29.6% increase. This upward trend in rent prices, despite a decreasing renter population, suggests a high demand for rental properties in the area, possibly driven by the city's reputation for excellent schools and proximity to Chicago.
As of 2024, the average home price in Highland Park has reached $664,104, a significant 10.3% increase from 2022. This growth has occurred despite the federal interest rate rising to 5.33% in 2024, indicating a robust local real estate market that continues to attract buyers even in a higher interest rate environment. The 2023 average home price was $635,764, showing a consistent year-over-year increase in property values.
Looking ahead, predictive models suggest that both average home prices and rent prices in Highland Park are likely to continue their upward trajectory over the next five years. Home prices could potentially reach or exceed $750,000 by 2029, while average rent prices may surpass $2,200 per month. These projections are based on historical trends and assume continued economic stability and demand for housing in the area.
In summary, Highland Park's real estate market is characterized by high and increasing homeownership rates, rapidly appreciating home values, and rising rent prices. The city's desirability, coupled with its strong local economy, appears to outweigh the impact of fluctuating interest rates on homeownership decisions. As the community continues to attract residents seeking a high-quality suburban lifestyle, both homeowners and investors in rental properties are likely to see continued growth in their real estate investments in the coming years.
