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Sauganash: Rising Home Values and Strong Ownership in Chicago's Suburban-Style 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
Sauganash, a residential neighborhood in Chicago, Illinois, is characterized by its tree-lined streets and historic homes. Over the past decade, this community has experienced notable trends in homeownership and housing prices. The area has maintained a consistently high rate of owner-occupied homes, while average home prices and rent prices have shown significant growth. The homeownership rate in Sauganash has remained remarkably stable, with a slight upward trend. In 2013, 92% of homes were owner-occupied, increasing to 94% by 2022. This high rate of homeownership coincides with a steady rise in average home prices. The average home price in 2013 was $393,339, which increased to $538,044 by 2022, representing a substantial growth of 36.8% over this period. The most significant year-over-year increase occurred between 2020 and 2021, when average home prices jumped from $470,203 to $510,308, an 8.5% increase in a single year.
Federal interest rates have played a role in homeownership trends in Sauganash. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates coincided with the neighborhood's consistently high homeownership rates, as favorable financing conditions made homeownership more accessible. The slight dip in homeownership from 94% in 2020 to 93% in 2019 occurred as interest rates peaked at 2.16% in 2019, potentially making home purchases slightly less affordable for some buyers.
The rental market in Sauganash has shown some fluctuation, both in terms of the percentage of renters and average rent prices. The percentage of renter-occupied units decreased from 11% in 2016 to 6% in 2022. Despite this decrease in the renter population, average rent prices have generally trended upward. In 2013, the average rent was $1,031, which increased to $2,163 by 2022, representing a substantial 109.8% increase. The most dramatic increase occurred between 2018 and 2019, when average rent jumped from $1,629 to $2,584, a 58.6% increase in a single year. This significant rise in rent prices, coupled with the high homeownership rates, suggests that Sauganash has become an increasingly desirable and potentially expensive neighborhood for renters.
In 2023 and 2024, the upward trend in average home prices continued in Sauganash. The average home price reached $544,838 in 2023 and further increased to $558,732 in 2024, representing a 2.9% year-over-year growth. This continued appreciation occurred despite a significant increase in federal interest rates, which rose from 5.02% in 2023 to 5.33% in 2024. These higher interest rates may impact affordability for potential homebuyers in the near future.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in Sauganash are likely to continue their upward trajectory, albeit at a potentially slower pace due to higher interest rates. We might expect average home prices to reach around $600,000 to $650,000 by 2029. Average rent prices, which have shown volatility in recent years, may stabilize somewhat but are likely to maintain an upward trend. By 2029, average rents could potentially range from $2,500 to $3,000 per month, depending on market conditions and housing supply.
In summary, Sauganash has demonstrated remarkable stability in its high homeownership rates while experiencing significant growth in both average home prices and average rent prices. The neighborhood's desirability, coupled with broader economic factors such as interest rates, has contributed to these trends. As Sauganash continues to evolve, it remains an attractive area for homeowners, with a small but potentially competitive rental market.
