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West Dundee: Rising Home Values Reshape Ownership Landscape
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 Dundee, located in Illinois, is a vibrant community with a population of 9,211 as of 2022. This charming village has experienced notable shifts in its housing market over the past decade, with interesting trends in homeownership rates, average home prices, and average rent prices.
The homeownership rate in West Dundee has shown a gradual decline from 2013 to 2022. In 2013, the homeownership rate was 73%, which remained relatively stable until 2017. However, from 2018 onwards, there was a noticeable decrease, reaching 66% in 2022. This decline in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $218,235, which steadily rose to $346,806 by 2022, representing a 58.9% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
The federal interest rates appear to have influenced homeownership rates in West Dundee. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates remained stable at around 73-74%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates started to decline. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Conversely, the percentage of renters in West Dundee has increased from 27% in 2013 to 34% in 2022. This rise in the renter population corresponds with a substantial increase in average rent prices. In 2013, the average rent was $1,151, which climbed to $1,556 by 2022, marking a 35.2% increase. The growth in both renter percentage and average rent prices suggests a strong demand for rental properties in the area, possibly driven by those priced out of the homeownership market.
In 2023 and 2024, the housing market in West Dundee continued to evolve. The average home price reached $363,784 in 2023 and further increased to $381,108 in 2024, showing a continued upward trend. Interestingly, federal interest rates also saw a significant rise during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may further impact homeownership rates in the coming years.
Looking ahead, based on the observed trends, we can expect average home prices in West Dundee to continue rising over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also likely to increase, driven by the growing renter population and overall housing demand. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, West Dundee has experienced a shift towards a higher proportion of renters, coupled with significant increases in both average home prices and rent prices over the past decade. The interplay between federal interest rates, housing affordability, and changing demographics has shaped these trends, creating a dynamic and evolving housing market in this Illinois community.
