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West Village: Rising Home Values and Ownership Rates Amidst Market Fluctuations
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 Village, a neighborhood in Evanston, Illinois, has experienced significant changes in homeownership rates and housing prices over the past decade. The area has seen a general trend of increasing homeownership, rising average home prices, and fluctuating average rent prices. The homeownership rate in West Village has shown a steady increase from 64% in 2013 to 72% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $305,610, which increased to $455,774 by 2022, representing a 49% increase over nine years. This correlation suggests that despite rising home prices, more residents are choosing to become homeowners, possibly due to the long-term investment potential of real estate in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates in West Village remained relatively stable, hovering around 63-65%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership surprisingly continued to increase, reaching 70% by 2019. This trend persisted even as interest rates fluctuated in subsequent years, with homeownership reaching 72% in 2022 despite a federal interest rate of 1.68%.
The renter population in West Village has decreased correspondingly, from 36% in 2013 to 28% in 2022. Interestingly, average rent prices have shown significant volatility during this period. In 2013, the average rent was $1,231, which increased moderately to $1,443 by 2019. However, there was a dramatic jump in average rent prices between 2019 and 2020, rising from $1,443 to $2,201, a 52% increase in just one year. By 2022, the average rent had slightly decreased to $2,259. This sharp increase in rent prices may have contributed to the shift towards homeownership, as residents sought to avoid escalating rental costs.
In 2023 and 2024, the average home prices in West Village continued to rise, reaching $456,523 in 2023 and $465,368 in 2024. This represents a modest but steady increase of about 2% per year. Notably, federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, home prices in the neighborhood have continued to appreciate.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in West Village may continue to rise over the next five years, albeit at a more moderate pace. Given the recent increases in interest rates, we might expect a slight slowdown in price appreciation, potentially reaching around $500,000 by 2029. Average rent prices, which have shown volatility in recent years, may stabilize or increase slightly, potentially reaching about $2,500 by 2029, assuming economic conditions remain relatively stable.
In summary, West Village has experienced a significant shift towards homeownership over the past decade, despite rising home prices and fluctuating interest rates. The sharp increase in average rent prices, particularly from 2019 to 2020, may have influenced this trend. As the neighborhood continues to evolve, it will be interesting to observe how these housing market dynamics shape the community's composition and economic landscape in the coming years.
