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Average Home Values and Ownership in Troy, Illinois Zip Code 62294: A Decade of Growth and Change
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
Zip code 62294, located in Troy, Illinois, has shown dynamic shifts in homeownership, average home prices, and rental trends over the past decade. This area has experienced notable changes in its real estate landscape, reflecting broader economic trends and local market conditions. The homeownership rate in zip code 62294 has demonstrated a general upward trend, increasing from 74% in 2013 to 80% in 2022. This significant rise in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $178,313, which steadily climbed to $276,380 by 2022, representing a 55% increase over this period. The year 2021 saw a particularly sharp rise in average home prices, jumping from $222,516 in 2020 to $251,367, a 13% increase in a single year.
The relationship between federal interest rates and homeownership rates in this zip code reveals an interesting pattern. Despite fluctuations in interest rates, homeownership rates have generally increased. For instance, when interest rates were at a low of 0.08% in 2021, homeownership stood at 77%. Interestingly, as interest rates rose to 1.68% in 2022, homeownership actually increased to 80%, contrary to the typical expectation that higher interest rates might discourage homeownership.
Renter percentages in zip code 62294 have shown an inverse relationship to homeownership rates, decreasing from 26% in 2013 to 20% in 2022. Average rent prices, however, have not consistently followed this downward trend. In 2013, the average rent was $1,165, which decreased to $965 by 2016. Subsequently, rent prices fluctuated, reaching $1,130 in 2021 before dropping slightly to $1,026 in 2022. These fluctuations in rent prices occurred despite the overall decrease in the percentage of renters, suggesting other factors such as housing supply and local economic conditions may have influenced rental costs.
In 2023 and 2024, the real estate market in zip code 62294 continued to evolve. The average home price rose to $287,138 in 2023 and further increased to $297,978 in 2024, marking a continued upward trend in property values. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, levels not seen since before 2008. This combination of rising home prices and higher interest rates presents a changing landscape for potential homebuyers in the area.
Looking ahead, predictive models suggest that average home prices in zip code 62294 may continue to rise over the next five years, potentially reaching around $330,000 by 2029. Average rent prices are also projected to increase, possibly surpassing $1,200 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 62294 has experienced a significant increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the percentage of renters. The area has shown resilience in its real estate market, with home prices continuing to rise even in the face of increasing interest rates. The coming years are likely to see further growth in both home values and rental costs, reflecting the area's ongoing development and attractiveness to residents.
