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Rosemoor's Housing Market: Rising Home Values and Declining Ownership in a Tree-Lined Chicago Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Rosemoor, a Chicago neighborhood, has experienced significant changes in its housing market over the past decade. This area, known for its residential character, has seen notable shifts in homeownership rates and substantial increases in average home prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Rosemoor has declined over the years. In 2013, 70% of residents owned homes, but by 2022, this figure had decreased to 62%. This decline coincides with a dramatic increase in average home prices. In 2013, the average home price in Rosemoor was $65,454. By 2022, it had risen to $180,411, representing a 175% increase over nine years. This substantial rise in home prices likely contributed to the decrease in homeownership, as affordability became a growing concern for potential buyers.
Federal interest rates have influenced homeownership trends in Rosemoor. From 2013 to 2016, historically low interest rates of 0.1% to 0.4% coincided with stable homeownership rates between 67% and 70%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more noticeably. This trend aligns with the understanding that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in Rosemoor has also shown interesting trends. The percentage of renters increased from 30% in 2013 to 38% in 2022. Despite this increase, average rent prices have fluctuated. In 2013, the average rent was $1,001, peaking at $1,174 in 2016 before returning to $1,001 in 2022. This fluctuation in rent prices, coupled with the increase in the renter population, suggests a complex interplay of factors affecting the rental market, possibly including changes in housing supply and demand dynamics within the neighborhood.
Recent data from 2023 and 2024 shows a slight reversal in the upward trend of average home prices. In 2023, the average home price in Rosemoor was $168,121, decreasing further to $163,957 in 2024. This occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This divergence from the typical inverse relationship between interest rates and home prices suggests other local or economic factors may be influencing the Rosemoor housing market.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Rosemoor may stabilize or show modest growth, assuming economic conditions remain relatively stable. The recent cooling of prices could lead to a period of more sustainable appreciation. For rent prices, the forecast suggests a potential for gradual increases, particularly if the trend of increasing renter populations continues. However, these increases are likely to be moderate, given the historical fluctuations in rent prices observed in the neighborhood.
In summary, Rosemoor has experienced a notable decrease in homeownership rates coupled with a significant increase in average home prices over the past decade. The rental market has grown, but with fluctuating average rent prices. Recent data shows a cooling in the home price market, which may impact future homeownership trends. These dynamics reflect the complex interplay of local market conditions, broader economic factors, and changing demographics in shaping the housing landscape of this Chicago neighborhood.
