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University Park: Rising Home Values and Ownership Amidst Rental Market Decline
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
University Park, located in Illinois, is a small community with a population of 10,373 as of 2022. The city has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics. Homeownership in University Park has shown a steady increase from 2013 to 2022. In 2013, 66% of residents were homeowners, and this figure rose consistently, reaching 74% by 2022. This upward trend in homeownership coincided with fluctuations in average home prices. The average home price in 2013 was $70,604, which then saw significant growth, reaching $165,672 by 2022. This represents a substantial increase of 134.6% over the nine-year period.
The relationship between federal interest rates and homeownership rates in University Park appears to follow expected patterns. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates increased from 66% to 65%. As interest rates began to rise more significantly from 2017 to 2019 (1% to 2.16%), homeownership continued to grow, reaching 68% in 2019. This trend suggests that other local factors may have had a stronger influence on homeownership than interest rates during this period.
Regarding rental trends, the percentage of renters in University Park has decreased over time, from 33% in 2013 to 26% in 2022. Despite this decline in the renter population, average rent prices have shown some volatility. The average rent increased from $1,063 in 2013 to a peak of $1,110 in 2017, before declining to $997 in 2022. This represents a slight overall decrease of 6.2% in average rent from 2013 to 2022, despite the growing population during this period.
In 2023 and 2024, the average home prices in University Park continued to rise, reaching $171,872 in 2023 and $175,092 in 2024. This represents a 3.7% increase from 2022 to 2023 and a further 1.9% increase from 2023 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on the historical data and current trends, we can project that average home prices in University Park may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. A conservative estimate might suggest an annual growth rate of 2-3%, which could bring average home prices to around $195,000-$200,000 by 2029. For rent prices, given the recent stabilization, we might expect a modest increase of 1-2% annually, potentially reaching an average of $1,050-$1,100 per month by 2029.
In summary, University Park has experienced a significant increase in homeownership rates and average home prices over the past decade, despite fluctuations in federal interest rates. The rental market has seen a decrease in the percentage of renters and some volatility in average rent prices. Recent data shows continued growth in home prices, but with higher interest rates potentially impacting future trends. These patterns reflect a dynamic housing market in University Park, with a clear shift towards increased homeownership and rising property values.
