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Sugar Grove (60554): Rising Home Values and Ownership Amidst Declining Rent Prices
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
Sugar Grove, located in zip code 60554 in Illinois, has experienced notable shifts in homeownership rates and housing prices over the past decade. This suburban community has seen a general trend of increasing homeownership and rising average home prices, while average rent prices have fluctuated.
The homeownership rate in Sugar Grove has shown a steady increase from 2013 to 2022. In 2013, the percentage of owner-occupied homes was 90%, which rose to 93% by 2022. This upward trend in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $227,226, which climbed to $363,481 by 2022, representing a 60% increase over this period. The most substantial year-over-year increase occurred between 2020 and 2021, when average home prices jumped from $292,159 to $324,844, a 11.2% rise.
Federal interest rates have played a role in shaping homeownership trends in Sugar Grove. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with the steady increase in homeownership rates, as more affordable financing options likely encouraged home purchases. The homeownership rate peaked at 95% in 2021 when interest rates were at a historic low of 0.08%.
The renter population in Sugar Grove has remained relatively small but has shown some fluctuations. In 2013, the percentage of renter-occupied homes was 8%, which remained fairly stable until 2021 when it dropped to 5%. However, it increased again to 7% in 2022. Average rent prices have shown a downward trend in recent years. In 2013, the average rent was $1,672, which increased to a peak of $1,728 in 2017. However, since then, average rent prices have decreased significantly, reaching $970 in 2022. This decline in average rent prices, coupled with the increase in homeownership rates, suggests a shift towards home buying in the community.
In 2023, the average home price in Sugar Grove reached $386,533, continuing the upward trend observed in previous years. The federal interest rate for 2023 was 5.02%, a significant increase from the previous year. Moving into 2024, the average home price has further increased to $405,685, while the federal interest rate has slightly risen to 5.33%. These higher interest rates may impact future homeownership trends in the area.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in Sugar Grove will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices, which have been declining, may stabilize or see a slight increase as the rental market adjusts to the overall housing market conditions.
In summary, Sugar Grove has experienced a strong trend towards homeownership, with a significant increase in average home prices over the past decade. The community has seen a corresponding decrease in the renter population and average rent prices. The recent rise in federal interest rates may influence future housing market dynamics, potentially moderating the rapid growth in home prices and homeownership rates observed in recent years.
