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Westmont: Rising Home Values and Ownership Trends Amid Interest Rate 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
Westmont, located in Illinois, is a suburban community known for its vibrant mix of residential and commercial areas. The city has experienced fluctuating trends in homeownership rates and housing prices over the past decade, with recent years showing a slight increase in owner-occupied housing and rising average home and rent prices.
The homeownership rate in Westmont has shown a gradual increase from 2013 to 2022. In 2013, 56% of housing units were owner-occupied, which rose to 59% by 2022. This upward trend in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $227,459, which steadily climbed to $335,327 by 2022, representing a 47% increase over this period. The most substantial year-over-year increase occurred between 2020 and 2021, with average home prices jumping from $292,849 to $316,237, a 8% rise in a single year.
Federal interest rates have played a role in shaping homeownership trends in Westmont. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relatively stable homeownership rates around 55%. As interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, there was a noticeable increase in homeownership to 57%. This trend continued into 2020 and 2021, with homeownership reaching 58% despite fluctuations in interest rates. The low-interest environment likely contributed to making home purchases more accessible for residents.
The rental market in Westmont has shown interesting trends in relation to the homeownership rates. As the percentage of renter-occupied units decreased from 44% in 2013 to 41% in 2022, average rent prices experienced a steady increase. In 2013, the average rent was $1,168, which rose to $1,312 by 2022, marking a 12.3% increase over this period. The most significant year-over-year increase in rent occurred between 2018 and 2019, jumping from $1,232 to $1,313, a 6.6% rise. This trend suggests that despite a decreasing proportion of renters, demand for rental properties remained strong, possibly due to population growth or changing demographics.
Looking at the most recent data, the average home price in Westmont reached $344,484 in 2023 and further increased to $362,637 in 2024. This represents a substantial 8.1% year-over-year increase from 2023 to 2024. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before 2008. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Westmont will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $425,000 to $450,000, assuming a moderate annual growth rate of 3-4%. For rent prices, the forecast suggests a continued upward trend, with average rents potentially reaching $1,500 to $1,600 by 2029, based on historical growth patterns and accounting for potential market adjustments.
In summary, Westmont has experienced a gradual increase in homeownership rates alongside rising home prices over the past decade. The rental market has seen steady price increases despite a decreasing proportion of renters. Recent data shows continued growth in home prices and higher interest rates, which may influence future housing market dynamics. The forecast suggests ongoing appreciation in both home values and rent prices, though the rate of increase may moderate due to economic factors and market conditions.
