Loading Content...
Rising Home Values in Norridge: A Compact Village's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Norridge, Illinois, a small suburban community located just northwest of Chicago, has experienced significant changes in its housing market over the past decade. This compact city, covering only 1.81 square miles, has seen steady population growth alongside substantial increases in both average home prices and average rent prices. Despite these changes, the city has maintained a high rate of homeownership.
Homeownership in Norridge has remained relatively stable, with a slight decline from 84% in 2014 to 81% in 2022. The average home prices have shown a consistent upward trend, increasing from $248,351 in 2010 to $345,703 in 2022, representing a 39.2% increase over 12 years. This trend suggests that while homeownership rates have slightly decreased, the value of owned properties has significantly appreciated.
The relationship between federal interest rates and homeownership rates in Norridge presents an interesting dynamic. Despite historically low interest rates between 2010 and 2021 (ranging from 0.08% to 0.40%), homeownership rates experienced a slight decline. This suggests that other factors, such as rising home prices or local economic conditions, may have had a stronger influence on homeownership than interest rates alone.
Renter percentages in Norridge have shown a modest increase, from 16% in 2014 to 19% in 2022. This rise in renters has been accompanied by a significant increase in average rent prices. In 2013, the average rent was $1,267, which rose to $1,416 by 2022, an 11.8% increase over nine years. The population growth from 14,642 in 2014 to 15,328 in 2022 may have contributed to the increased demand for rental properties, driving up average rent prices.
As of 2024, the average home price in Norridge has reached $372,221, showing a continued upward trajectory from previous years. This represents a 7.7% increase from the 2022 average price of $345,703. The federal interest rate for 2024 stands at 5.33%, which is significantly higher than the rates seen in the previous decade. This increase in interest rates could potentially impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, average home prices in Norridge are expected to continue their upward trajectory, potentially reaching around $425,000 by 2029. This projection is based on the consistent growth observed over the past decade and assumes similar economic conditions persist. For average rent prices, the forecast suggests a potential increase to approximately $1,700 per month by 2029, considering the steady rise observed in recent years and accounting for inflation and demand factors.
In summary, Norridge has maintained a high rate of homeownership despite rising average home prices. The slight increase in renter percentages has been accompanied by notable increases in average rent prices. The continued appreciation of property values, coupled with rising interest rates, may present both opportunities and challenges for current and prospective homeowners in this suburban Illinois community. The forecasted trends suggest that Norridge will likely remain an attractive area for homeowners, with potential for further property value appreciation in the coming years.
