Berwyn Housing Expenses: Rent, Buying, and Ownership Costs

The Housing Market in Berwyn Today

Berwyn, a western suburb of Chicago, offers a unique blend of urban amenities and small-town charm that appeals to a diverse range of residents. Its proximity to downtown Chicago via the Metra BNSF line and I-290 makes it an attractive option for commuters seeking more affordable housing outside the city. Berwyn’s housing market is characterized by a mix of historic bungalows, mid-century ranches, and newer townhome developments.

Compared to neighboring Oak Park and Riverside, Berwyn offers more affordable housing options while still providing access to good schools, parks, and local businesses. The city’s revitalized downtown area along Roosevelt Road and Cermak Road has seen an influx of new restaurants, shops, and entertainment venues in recent years, adding to Berwyn’s appeal for young professionals and families.

Berwyn’s housing market has remained relatively stable compared to the broader Chicago metro area, with moderate price appreciation and steady demand. The city’s diverse economic base, which includes healthcare, education, and manufacturing jobs, helps support a resilient housing market. Major employers like MacNeal Hospital and Morton College provide local job opportunities, while Berwyn’s location offers easy access to employment centers throughout the region.

Renting in Berwyn: Typical Costs and Trends

Renters in Berwyn can expect to find a variety of apartment options, from vintage courtyard buildings to newer complexes with modern amenities. A typical one-bedroom apartment in Berwyn rents for around $1,100 to $1,300 per month, while two-bedroom units range from $1,300 to $1,600. These prices are generally lower than in neighboring Oak Park and Riverside, making Berwyn an attractive choice for cost-conscious renters.

Young professionals, couples, and small families make up a significant portion of Berwyn’s renter population, drawn by the city’s affordability, location, and community amenities. Rental prices tend to be higher in the northern part of Berwyn, particularly in the Depot District near the Metra station, where demand is driven by commuters seeking convenient access to downtown Chicago.

Berwyn’s diverse housing stock also includes rental options in bungalow-style homes and two-flats, which can offer more space and privacy than traditional apartments. These rentals are popular with families and those seeking a more residential setting while still enjoying the benefits of renting, such as lower upfront costs and less maintenance responsibility.

Owning a Home in Berwyn: Prices, Taxes, and HOA Fees

Homebuyers in Berwyn will find a variety of housing styles and price points to fit their needs and budget. The median home price in Berwyn is around $270,000, which is more affordable than many other Chicago suburbs. Berwyn’s iconic bungalows, built primarily in the 1920s and 1930s, offer charm and character at prices typically ranging from $200,000 to $350,000, depending on size, condition, and location.

Property taxes in Berwyn are around 2.5% of a home’s assessed value, which is slightly higher than the national average but in line with many Chicago suburbs. For a home with a market value of $270,000, annual property taxes would be approximately $6,750, or $560 per month.

While not as common as in some newer suburbs, Berwyn does have some neighborhoods with homeowners associations (HOAs). These are typically found in newer townhome or condo developments. HOA fees in Berwyn usually range from $100 to $300 per month, depending on the community and amenities provided. These fees often cover exterior maintenance, landscaping, snow removal, and sometimes utilities or recreational facilities.

Apartment vs House in Berwyn: Side-by-Side Costs

When comparing the monthly costs of renting an apartment versus owning a house in Berwyn, it’s essential to consider all the expenses involved. The table above provides a side-by-side comparison of typical monthly costs for a 2-bedroom apartment and a 3-bedroom house in Berwyn.

As shown, the monthly rent for a 2-bedroom apartment averages $1,450, which includes most utilities. Renters insurance is relatively affordable at around $15 per month. In contrast, the monthly mortgage payment for a 3-bedroom house is approximately $1,895, based on a median home price of $270,000 with a 30-year fixed-rate mortgage at 3.5% interest and a 20% down payment.

Homeowners must also factor in additional monthly expenses such as property taxes ($550), higher utility costs ($280), homeowners insurance ($110), and potentially HOA fees ($150). These additional costs can add up to a significant difference in monthly housing expenses, with homeowners paying around $1,340 more per month than renters in this scenario.

Utility & Upkeep Differences

Utility costs can vary significantly between apartments and houses in Berwyn due to differences in size, energy efficiency, and included services. Apartment renters often benefit from lower utility bills, as the smaller space requires less energy to heat and cool. Additionally, some apartment buildings may include certain utilities like water, sewer, and trash in the monthly rent.

Homeowners, on the other hand, are responsible for all utility costs, which can be higher due to the larger space and potential inefficiencies in older homes. Berwyn’s climate, with cold winters and hot summers, can lead to higher heating and cooling expenses. Homeowners should also budget for regular maintenance tasks like lawn care, snow removal, and home repairs, which can add to the overall cost of ownership.

5-Year Rent vs Buy Outlook

When considering whether to rent or buy in Berwyn, it’s important to look at the long-term financial picture. Over a 5-year period, the total cost of renting a 2-bedroom apartment at $1,645 per month would be approximately $98,700. In comparison, the total cost of owning a 3-bedroom house with a monthly payment of $2,985 would be around $179,100 over the same period.

However, it’s crucial to consider the potential for home appreciation and the building of equity when owning a home. Berwyn has seen steady home value growth in recent years, with an average annual appreciation rate of 3-4%. If this trend continues, a homeowner could potentially see their home value increase by $40,000 to $55,000 over a 5-year period, helping to offset some of the higher monthly costs of ownership.

Ultimately, the decision to rent or buy in Berwyn depends on individual financial circumstances, long-term goals, and lifestyle preferences. Renters may enjoy greater flexibility and lower upfront costs, while homeowners can build equity and potentially benefit from home value appreciation over time. It’s essential for both renters and buyers to carefully consider their budget and long-term plans when making housing decisions in Berwyn.

FAQs About Housing Costs in Berwyn

• How much are HOA fees in Berwyn?
  HOA fees in Berwyn typically range from $100 to $300 per month, depending on the community and amenities provided.
• What is the property tax rate in Berwyn?
  The property tax rate in Berwyn is around 2.5% of a home’s assessed value.
• Is renting cheaper than buying long-term in Berwyn?
  Over a 5-year period, renting is generally cheaper than buying in Berwyn. However, homeownership can provide the opportunity to build equity and potentially benefit from home value appreciation.
• Do houses have higher utility costs than apartments?
  Yes, houses in Berwyn typically have higher utility costs than apartments due to their larger size and potential inefficiencies in older homes.
• What’s the monthly cost difference between apartments and houses in Berwyn?
  The monthly cost difference between a 2-bedroom apartment and a 3-bedroom house in Berwyn is approximately $1,340, with houses being more expensive due to additional expenses like property taxes, higher utilities, insurance, and potential HOA fees.

Making Smart Housing Choices in Berwyn

When deciding whether to rent or buy a home in Berwyn, it’s essential to consider your current financial situation, long-term goals, and lifestyle preferences. Renting offers flexibility and lower upfront costs, making it an attractive option for those who may be unsure about their long-term plans or are not yet ready for the responsibilities of homeownership. On the other hand, buying a home can provide a sense of stability, the opportunity to build equity, and the potential for home value appreciation over time.

To make an informed decision, start by evaluating your monthly budget and considering all the costs associated with renting or owning a home in Berwyn. Our guide to monthly budgeting in Berwyn can help you assess your financial readiness for either option. Additionally, it’s crucial to understand the full cost of living in Berwyn, including expenses like groceries, transportation, and healthcare, to ensure that your housing choice fits comfortably within your overall budget.

If you’re considering a move to Berwyn, whether renting or buying, it’s important to plan ahead and choose the right method for your needs. Our guide to pods vs. trucks can help you determine the most cost-effective and efficient way to make your move. By carefully evaluating your options and making informed decisions based on your unique circumstances, you can find the perfect housing solution in Berwyn that meets your needs and supports your long-term financial goals.