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Schaumburg's Rising Home Values and Changing Ownership Landscape
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
Schaumburg, Illinois, a vibrant village located in the Chicago metropolitan area, is known for its thriving business district and popular attractions like Woodfield Mall. Over the past decade, Schaumburg has experienced fluctuations in homeownership rates and steady increases in both average home prices and average rent prices, reflecting the dynamic nature of its real estate market.
The relationship between homeownership rates and average home prices in Schaumburg has shown interesting trends. In 2013, the homeownership rate was 61%, with an average home price of $179,999. As average home prices increased to $219,424 by 2016, the homeownership rate rose to 68%. However, this trend didn't persist consistently. By 2018, despite average home prices climbing to $242,649, the homeownership rate dropped to 57%. The market then stabilized, with homeownership rates hovering around 62-63% from 2019 to 2021, while average home prices continued to rise, reaching $270,897 in 2021.
Federal interest rates have played a role in homeownership trends in Schaumburg. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates fluctuated between 59% and 63%. As interest rates began to rise from 2016 to 2019 (0.40% to 2.16%), homeownership rates showed more volatility, ranging from 57% to 68%. The sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with a stabilization of homeownership rates at 62-63%, possibly reflecting increased affordability of mortgages.
Renter percentages and average rent prices in Schaumburg have shown a generally inverse relationship to homeownership rates. In 2013, the renter percentage was 39%, with an average rent of $1,216. As the renter percentage increased to 43% in 2018, average rent also rose to $1,432. However, by 2022, the renter percentage decreased to 35%, while average rent continued to climb, reaching $1,635. This suggests that rising rent prices may have encouraged some renters to transition to homeownership, despite increasing home prices.
In 2023, the average home price in Schaumburg reached $300,836, and in 2024, it further increased to $320,024. This represents a significant jump from the 2022 average of $289,095. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the 1.68% rate in 2022. These higher interest rates may impact future homeownership trends in Schaumburg.
Looking ahead, predictive models suggest that average home prices in Schaumburg may continue to rise over the next five years, potentially reaching around $375,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,900 per month within the same timeframe. These projections assume continued economic growth and demand for housing in the area.
In summary, Schaumburg's real estate market has demonstrated resilience and growth over the past decade. The interplay between homeownership rates, average home prices, and average rent prices reflects the complex dynamics of the local housing market. While rising home prices and interest rates pose challenges for potential homebuyers, the village's strong economic foundation and desirable location continue to drive demand for both owned and rented properties.
