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West Lawn, Chicago: Rising Home Values and Stable Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
West Lawn, a vibrant Chicago neighborhood, has experienced significant changes in homeownership rates and housing prices over the past decade. The community has maintained a strong majority of owner-occupied homes, with ownership rates fluctuating between 68% and 74% from 2013 to 2022. During this period, both average home prices and average rent prices have shown overall upward trends.
The relationship between homeownership rates and average home prices in West Lawn reveals interesting patterns. In 2013, the homeownership rate was 74%, with an average home price of $120,472. As average home prices steadily increased, reaching $260,230 in 2022, the homeownership rate experienced some fluctuation. Notably, there was a slight dip to 68% ownership in 2020 when average home prices were $211,940. However, by 2022, homeownership rebounded to 73% despite the continued rise in average home prices.
Federal interest rates have played a role in shaping homeownership trends in West Lawn. The period from 2013 to 2016 saw relatively stable low interest rates, ranging from 0.09% to 0.4%, which coincided with homeownership rates of 71-74%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates in West Lawn showed a slight decline, reaching 69% in 2018. The sharp drop in interest rates to 0.08% in 2021 may have contributed to the slight increase in homeownership to 69% that year, up from 68% in 2020.
Renter percentages and average rent prices in West Lawn have shown some correlation. In 2013, the renter-occupied rate was 26%, with an average rent of $1,080. As the renter percentage increased to 31% in 2018, average rent prices actually decreased slightly to $1,047. By 2022, the renter percentage had decreased to 27%, while average rent rose to $1,062. This suggests that factors beyond simple supply and demand, such as overall housing market conditions and local economic factors, may influence rent prices in the neighborhood.
In 2023 and 2024, West Lawn experienced a slight dip in average home prices, followed by a modest increase. The average home price in 2023 was $256,223, showing a small decrease from 2022. However, in 2024, prices rebounded to $261,077. This occurred against a backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to the temporary slowdown in home price growth.
Looking ahead, predictive models suggest that West Lawn may continue to see modest growth in both average home prices and average rent prices over the next five years. Average home prices are projected to increase at a rate of about 2-3% annually, potentially reaching around $295,000 by 2029. Average rent prices are expected to follow a similar trajectory, with estimated increases of 1-2% per year, potentially reaching approximately $1,150 by 2029.
In summary, West Lawn has maintained a strong homeownership base despite rising home prices over the past decade. The neighborhood has shown resilience in the face of changing economic conditions, including fluctuations in federal interest rates. While renter percentages have varied, they have remained relatively stable overall. The recent slight dip in home prices followed by a rebound suggests a dynamic market that continues to adapt to broader economic trends. As West Lawn moves forward, it is likely to see continued modest growth in both home values and rental rates, reflecting its enduring appeal as a residential area in Chicago.
