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Rising Home Values and Stable Ownership: Villa 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
Villa Park, a neighborhood in Moline, Illinois, has experienced fluctuating trends in homeownership and housing prices over the past decade. This area, known for its residential character, has seen notable shifts in its real estate landscape, reflecting broader economic and demographic changes. The homeownership rate in Villa Park has shown a slight downward trend over the years, with some fluctuations. In 2013, the homeownership rate stood at 79%, remaining relatively stable until 2016. However, there was a noticeable decline to 72% in 2018, followed by a recovery to 78% by 2022. This trend coincides with changes in average home prices, which have generally increased over the same period. In 2013, the average home price was $110,012, rising steadily to reach $146,923 by 2022, representing a 33.5% increase over nine years.
The relationship between federal interest rates and homeownership rates in Villa Park shows some correlation. For instance, the period of low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%) coincided with stable homeownership rates around 79-80%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a corresponding decline in homeownership rates, reaching a low of 72% in 2018. This suggests that higher interest rates may have made home purchases less affordable for some residents.
Rental trends in Villa Park have shown an inverse relationship to homeownership rates. The percentage of renters increased from 21% in 2013 to a peak of 28% in 2018, before declining to 22% in 2022. Average rent prices have been volatile, with significant fluctuations. In 2013, the average rent was $842, rising to a peak of $1,799 in 2017, before settling at $956 in 2022. These changes in rent prices don't always directly correlate with the percentage of renters, suggesting other factors such as local economic conditions or housing supply may play a role.
In 2023 and 2024, Villa Park's real estate market continued to evolve. The average home price in 2023 reached $153,896, a 4.7% increase from 2022. In 2024, it further increased to $155,636, showing a slower growth rate of 1.1%. This coincides with higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially moderating home price growth.
Looking ahead, based on current trends, we can project that average home prices in Villa Park may continue to rise, but at a more moderate pace. Over the next five years, average home prices could potentially reach around $170,000 to $180,000, assuming consistent economic conditions. Average rent prices might stabilize or show modest increases, potentially reaching $1,100 to $1,200 per month by 2029.
In summary, Villa Park has experienced a gradual increase in average home prices over the past decade, with some fluctuations in homeownership rates. The rental market has shown volatility in both occupancy rates and prices. Recent years have seen a stabilization in homeownership rates and a moderation in home price growth, likely influenced by rising interest rates. These trends suggest a dynamic real estate market in Villa Park, balancing between homeownership aspirations and rental market demands.
