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West Chicago's Rising Home Values and Ownership Rates: A Suburban Success Story
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 Chicago, Illinois, located approximately 30 miles west of Chicago, is a vibrant city with a rich history rooted in the railroad industry. The city, which includes zip code 60185, has experienced notable shifts in homeownership rates and housing prices over the past decade. From 2013 to 2022, West Chicago saw a gradual increase in homeownership, while average home prices and average rent prices demonstrated consistent upward trends.
The homeownership rate in West Chicago increased from 70% in 2013 to 75% in 2022, indicating a growing preference for property ownership among residents. This trend coincided with a significant rise in average home prices, which grew from $203,900 in 2013 to $328,417 in 2022, representing a 61% increase over nine years. The relationship between homeownership rates and average home prices suggests that despite rising costs, more residents were able to enter the housing market.
Federal interest rates played a crucial role in shaping homeownership trends in West Chicago. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. These low rates likely contributed to the increase in homeownership by making mortgages more affordable. For instance, the homeownership rate rose from 70% in 2013 to 72% in 2020, coinciding with interest rates remaining below 2.5% during this period.
The rental market in West Chicago experienced its own set of changes. The percentage of renters decreased from 30% in 2013 to 25% in 2022. However, this decrease in the renter population was accompanied by a substantial increase in average rent prices. The average rent rose from $1,114 in 2013 to $1,475 in 2022, a 32% increase. This trend suggests that while fewer residents were renting, those who did faced higher costs, possibly due to increased demand for higher-quality rental properties or limited rental inventory.
In 2023 and 2024, West Chicago's housing market continued to evolve. The average home price reached $333,364 in 2023 and further increased to $346,527 in 2024, showing a continued upward trajectory. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Looking ahead, predictive models suggest that West Chicago's housing market will likely continue its upward trend over the next five years. Average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $400,000 by 2029. Average rent prices are expected to follow a similar pattern, with an estimated annual growth of 2-3%, potentially surpassing $1,700 per month by 2029.
In summary, West Chicago has witnessed a steady increase in homeownership rates and housing prices over the past decade. The interplay between federal interest rates, homeownership trends, and housing costs has shaped a dynamic real estate landscape. As the city continues to grow and evolve, these trends suggest a robust housing market with increasing property values and a strong preference for homeownership among residents.
