Renter percentages in Carbon Cliff have generally increased from 2013 to 2022, inversely mirroring the homeownership trend. The renter population grew from 29% in 2013 to 39% in 2022. This increase in renters coincided with a substantial rise in average rent prices. In 2013, the average rent was $584, but by 2022, it had climbed to $906, marking a 55% increase. The population fluctuated during this period, starting at 474 in 2013, peaking at 496 in 2014, and settling at 486 in 2022, which may have influenced rental demand and prices.

Looking at the most recent data, the average home price in Carbon Cliff for 2023 was $113,959, showing a slight increase from 2022. However, in 2024, the average home price decreased to $112,128. This recent dip coincides with a significant rise in federal interest rates, which reached 5.02% in 2023 and further increased to 5.33% in 2024. These higher interest rates may be contributing to the slight cooling in the housing market.

Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Carbon Cliff may experience modest growth, potentially reaching around $120,000 by 2029. This projection considers the recent price stabilization and the current high-interest rate environment. For rent prices, the forecast suggests continued upward movement, potentially reaching an average of $1,000 to $1,100 per month by 2029, based on the strong upward trend observed in recent years.

In summary, Carbon Cliff has experienced a gradual shift towards a higher percentage of renters, coinciding with substantial increases in both average home prices and rent costs. The interplay between federal interest rates, homeownership rates, and housing costs highlights the complex dynamics of the local real estate market. The recent stabilization in home prices, coupled with rising interest rates, suggests a potential period of adjustment in the housing market for this Illinois community.