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Arcola, Illinois: Home Values and Ownership Trends in the City with the World's Only Hippie Memorial
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
Arcola, Illinois, a small city with a population of 3,710 in 2022, is located in Douglas County. Known for its rich agricultural heritage and Amish community influence, Arcola has experienced fluctuating trends in homeownership and housing prices over the past decade. The city has seen a general decline in homeownership rates, while average home prices have steadily increased, and average rent prices have shown variability.
Homeownership rates in Arcola have generally decreased from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 74%, which dropped to 64% by 2019, before rebounding slightly to 72% in 2022. Concurrently, average home prices have shown a consistent upward trend. In 2012, the average home price was $73,246, which increased to $127,036 by 2022, representing a substantial 73.4% increase over a decade. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates in Arcola fluctuated but generally remained above 65%. The low interest rates likely contributed to maintaining homeownership levels by making mortgages more affordable. However, the sharp increase in interest rates to 1.68% in 2022 coincided with a slight increase in homeownership to 72%, possibly due to residents rushing to purchase homes before rates climbed further.
Renter percentages in Arcola have generally increased from 2013 to 2022, mirroring the decline in homeownership. The renter population grew from 26% in 2013 to a peak of 36% in 2019, before settling at 28% in 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $731, which spiked to $1,436 in 2016, before decreasing to $744 in 2022. The fluctuations in rent prices don't show a clear correlation with renter percentages, suggesting that other factors, such as local economic conditions or housing supply, may have influenced renting trends.
In 2023, the average home price in Arcola reached $130,151, with federal interest rates at 5.02%. As of 2024, the average home price has further increased to $136,774, while interest rates have risen to 5.33%. This continued upward trend in both home prices and interest rates may present challenges for potential homebuyers in Arcola, potentially impacting future homeownership rates.
Looking ahead, predictive models suggest that average home prices in Arcola are likely to continue their upward trajectory over the next five years. Based on historical trends, we can expect average home prices to potentially reach around $160,000 to $170,000 by 2029. Average rent prices, which have been more volatile, are harder to predict with certainty. However, if the current trend continues, we might see average rents stabilize or increase slightly, potentially reaching $800 to $850 per month by 2029.
In summary, Arcola has experienced a general decline in homeownership rates over the past decade, coupled with a significant increase in average home prices. The inverse relationship between these trends suggests that rising property values may be affecting affordability for potential homeowners. The recent sharp increase in interest rates, combined with rising home prices, may continue to impact homeownership rates in the coming years. Meanwhile, the rental market has shown volatility in both renter percentages and average rent prices, indicating a dynamic housing landscape in Arcola.
