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Vernon Hills: Rising Home Values and Shifting Ownership in a Thriving Illinois Suburb
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
Vernon Hills, a vibrant village in Lake County, Illinois, is known for its excellent schools, diverse community, and robust retail sector. Over the past decade, the city has experienced significant shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Vernon Hills has shown a gradual decline from 2013 to 2019, followed by a slight recovery. In 2013, 75% of residents owned their homes, but this figure decreased to 64% by 2019. However, the trend reversed slightly, with homeownership rising to 66% in 2022. This shift coincides with fluctuations in average home prices. The average home price in Vernon Hills increased from $259,455 in 2010 to $359,439 in 2022, representing a 38.5% increase over 12 years. Despite this overall upward trend, there were periods of decline, such as from 2010 to 2012, when average home prices fell from $259,455 to $227,192.
The relationship between federal interest rates and homeownership rates in Vernon Hills aligns with well-established economic principles. As interest rates dropped from 0.18% in 2010 to 0.08% in 2021, it created a favorable environment for home buyers. This period coincided with the recovery in homeownership rates from 64% in 2019 to 66% in 2022, suggesting that lower interest rates may have encouraged more residents to purchase homes.
Renter percentages in Vernon Hills have shown an inverse relationship to homeownership rates, increasing from 25% in 2013 to a peak of 36% in 2019, before slightly decreasing to 34% in 2022. Average rent prices have also fluctuated, rising from $1,623 in 2013 to a peak of $2,118 in 2018, before settling at $1,939 in 2022. The population growth from 23,746 in 2013 to 24,942 in 2022 may have contributed to the overall increase in rent prices due to higher demand for rental properties.
In 2023 and 2024, Vernon Hills has seen continued growth in average home prices, reaching $380,167 in 2023 and $400,167 in 2024. This represents a significant increase of 11.3% from 2022 to 2024. Concurrently, federal interest rates have risen to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and affordability in the area.
Looking ahead, predictive models suggest that average home prices in Vernon Hills could continue to rise over the next five years, potentially reaching around $450,000 by 2029 if current trends persist. Average rent prices may also see moderate increases, potentially approaching $2,200 per month by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, Vernon Hills has experienced a complex interplay between homeownership rates, housing prices, and rental market dynamics over the past decade. The recent uptick in homeownership, coupled with rising home prices and stabilizing rent costs, suggests a resilient and evolving housing market. The city's ability to maintain a balance between ownership and rental options will be crucial for accommodating its diverse population and sustaining its attractiveness as a residential community in the coming years.
