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West Garfield Park: Rising Home Values and Ownership Rates Amid Economic Shifts
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 Garfield Park, a neighborhood in Chicago, Illinois, has experienced significant changes in its real estate market and demographics over the past decade. This analysis focuses on the trends in homeownership rates, average home prices, and rental market dynamics from 2013 to 2024. The homeownership rate in West Garfield Park has shown a notable increase, rising from 26% in 2019 to 34% in 2022. This upward trend coincided with a dramatic rise in average home prices. In 2013, the average home price was $47,323, which increased by 276% to $178,287 in 2022. This substantial appreciation in home values likely contributed to the growing interest in homeownership within the community.
Federal interest rates have played a crucial role in shaping homeownership trends in West Garfield Park. From 2013 to 2020, interest rates remained historically low, ranging from 0.09% to 0.38%. This period of low interest rates corresponded with the gradual increase in homeownership rates, as more affordable financing options made purchasing homes more attractive. However, interest rates began to rise sharply in 2022 (1.68%) and 2023 (5.02%), which may impact homeownership trends in the coming years.
The rental market in West Garfield Park has also undergone significant changes. The percentage of renters decreased slightly from 74% in 2019 to 66% in 2022. Despite this decrease, average rent prices have shown an overall upward trend. In 2013, the average rent was $1,113, which fluctuated over the years before reaching $1,044 in 2022. The population of West Garfield Park has also fluctuated, with 14,081 residents recorded in 2022, down from a peak of 15,846 in 2012. These population changes may have influenced the demand for rental properties and subsequently affected rent prices.
The most recent data shows that the average home price in West Garfield Park was $168,013 in 2023 and $165,059 in 2024, indicating a slight decrease from the 2022 peak. This trend aligns with the continued increase in interest rates, which reached 5.33% in 2024, potentially cooling the housing market.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in West Garfield Park may stabilize or experience modest growth, assuming interest rates remain elevated. The recent uptick in homeownership rates could continue if economic conditions remain favorable, but at a slower pace due to higher financing costs. For the rental market, moderate increases in average rent prices are projected, driven by ongoing demand for rental properties in the area.
In summary, West Garfield Park has experienced significant changes in its real estate landscape over the past decade. The neighborhood has seen a substantial increase in average home prices, a gradual rise in homeownership rates, and fluctuating rent prices. These trends have been influenced by factors such as federal interest rates, population changes, and overall economic conditions. As the community continues to evolve, it will be crucial to monitor these trends and their impact on the local housing market.
