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Southwest Aurora: Rising Home Values Amid Market Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Southwest Aurora, located in Aurora, Illinois, is a neighborhood that has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Southwest Aurora has shown considerable variation from 2013 to 2022. In 2013, the neighborhood had a homeownership rate of 66%. This rate declined to 58% in 2015 before rebounding to 70% in 2020. By 2022, it had settled at 59%. During this same period, average home prices in the area demonstrated a strong upward trend. In 2012, the average home price was $58,384. By 2022, this figure had more than tripled to $182,262, representing a substantial increase in property values over a decade.
The relationship between federal interest rates and homeownership rates in Southwest Aurora follows a generally inverse pattern. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates in the neighborhood reached their peak at 70% in 2020. Conversely, as interest rates began to rise in 2022 to 1.68%, the homeownership rate dropped to 59%, illustrating how lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Southwest Aurora have fluctuated inversely with homeownership rates, as expected. The percentage of renters increased from 34% in 2013 to a peak of 42% in 2015, before declining to 30% in 2020 and then rising again to 41% in 2022. Average rent prices have shown volatility over this period. In 2013, the average rent was $1,239. It peaked at $1,391 in 2016 before decreasing to $1,076 in 2022. The population of Southwest Aurora decreased from 9,850 in 2010 to 7,904 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, Southwest Aurora's housing market continued to evolve. The average home price in 2023 was $194,638, representing a 6.8% increase from 2022. In 2024, the average home price further increased to $212,944, a 9.4% jump from 2023. These significant price increases occurred despite rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that average home prices in Southwest Aurora may continue their upward trajectory over the next five years, potentially reaching around $250,000 by 2029. Average rent prices, which have shown more volatility, are projected to stabilize and potentially increase moderately, possibly reaching $1,300-$1,400 per month in the same timeframe.
In summary, Southwest Aurora has experienced significant changes in its housing market, characterized by fluctuating homeownership rates, steadily increasing average home prices, and volatile rent prices. The inverse relationship between interest rates and homeownership rates has been evident, with recent interest rate hikes potentially influencing future market dynamics. As the neighborhood continues to evolve, these trends will likely shape its housing landscape in the coming years.
