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Rising Home Values and Stable Ownership in River Grove, Illinois: A Decade of Housing Market Resilience
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
River Grove, Illinois: Home Values Soar as Ownership Remains Steady River Grove, located in Illinois, is a small suburban community covering an area of 2.39 square miles. The city has experienced fluctuations in its homeownership rates and housing market over the past decade, with notable trends in both average home prices and average rent prices.
From 2013 to 2022, River Grove saw a slight decline in homeownership rates, dropping from 62% to 61%. During this same period, average home prices in the area experienced significant growth. In 2013, the average home price was $131,936, which steadily increased to $263,755 by 2022, representing a remarkable 100% increase over nine years. This substantial rise in home values did not correspond with an increase in homeownership, suggesting that other factors were influencing residents' ability or willingness to purchase homes.
The relationship between federal interest rates and homeownership rates in River Grove shows some correlation. In 2013, when interest rates were at a low 0.11%, homeownership stood at 62%. As interest rates began to rise, reaching 1.68% in 2022, homeownership slightly decreased to 61%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in River Grove fluctuated between 36% and 40% from 2013 to 2022. The average rent prices showed a general upward trend during this period. In 2013, the average rent was $997, which increased to $1,182 by 2022, representing an 18.6% rise. The population of River Grove remained relatively stable during this time, with 9,808 residents in 2013 and 10,035 in 2022. This slight population increase, combined with rising rent prices, suggests a growing demand for rental properties in the area.
In 2023, the average home price in River Grove reached $269,353, continuing the upward trend observed in previous years. The federal interest rate for 2023 was 5.02%, a significant increase from the previous year. Moving into 2024, the average home price further increased to $281,774, while the federal interest rate rose to 5.33%. These higher interest rates may impact homebuying affordability and could potentially influence future homeownership rates in the area.
Looking ahead, based on the observed trends, it's projected that average home prices in River Grove will continue to rise over the next five years, albeit potentially at a slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and the overall rise in housing costs. However, the rate of increase for both home prices and rents may moderate compared to the rapid growth seen in recent years.
In summary, River Grove has experienced significant growth in both average home prices and average rent prices over the past decade. Despite these increases, homeownership rates have remained relatively stable, with a slight decrease observed. The interplay between rising housing costs, population growth, and fluctuating interest rates has shaped the local real estate market, creating a dynamic environment for both homeowners and renters in this Illinois community.
