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West Chatham: Rising Home Values and Shifting Ownership in Chicago's Dynamic Neighborhood
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
West Chatham, a neighborhood in Chicago, Illinois, has undergone significant changes in its real estate landscape over the past decade. This area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in West Chatham has shown a general upward trend from 2013 to 2022. In 2013, the percentage of owner-occupied homes was 46%, which increased to 50% by 2022. This shift towards homeownership coincided with a substantial rise in average home prices. In 2013, the average home price in West Chatham was $58,211, which more than doubled to $156,721 by 2022, representing a 169% increase over nine years.
The relationship between federal interest rates and homeownership rates in West Chatham presents an interesting dynamic. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 0.40%), the neighborhood saw only a modest increase in homeownership. This suggests that other factors, such as local economic conditions or housing availability, may have played a more significant role in homeownership trends than interest rates alone.
Renter percentages in West Chatham have generally decreased as homeownership increased, dropping from 54% in 2013 to 50% in 2022. Average rent prices, however, have shown volatility. In 2013, the average rent was $1,248, which peaked at $1,711 in 2017 before declining to $1,038 in 2022. This 37% decrease in average rent from 2017 to 2022 occurred despite a slight increase in population from 4,713 to 4,935 during the same period, suggesting potential changes in housing supply or local economic factors affecting rental prices.
Looking at the most recent data, the average home price in West Chatham was $146,122 in 2023 and increased slightly to $147,750 in 2024. This represents a modest 1.1% increase, indicating a stabilization in the housing market. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying activity in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in West Chatham will continue to rise, albeit at a slower pace than observed in the previous decade. The average home price is projected to reach approximately $170,000 by 2029. Average rent prices are expected to stabilize and gradually increase, potentially reaching around $1,200 per month by 2029, assuming economic conditions remain favorable and housing supply keeps pace with demand.
In summary, West Chatham has experienced a shift towards increased homeownership, accompanied by significant growth in average home prices over the past decade. The rental market has seen more volatility, with recent trends showing decreasing rents despite population growth. The neighborhood's real estate market appears to be entering a period of stabilization, with moderate growth expected in both home prices and rents over the next five years.
