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Average Home Values and Ownership in Zip Code 61250: A Decade of Change in Erie, Illinois
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 61250, located in Erie, Illinois, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, with a population of 2,469 in 2022, has seen fluctuations in both average home prices and average rent, reflecting broader economic trends and local market dynamics.
The ownership percentage in zip code 61250 has shown a slight downward trend over recent years. In 2013, the homeownership rate stood at 83%, but by 2022, it had decreased to 74%. This 9% decline coincided with a significant increase in average home prices. In 2013, the average home price was $115,057, which steadily rose to $147,965 by 2022, representing a 28.6% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 61250. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 82% to 85%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a corresponding decline, dropping to 74% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 61250 have increased as homeownership rates declined. In 2013, renters made up 17% of the population, which increased to 26% by 2022. Interestingly, average rent prices have shown volatility during this period. In 2013, the average rent was $767, which peaked at $775 in 2014 before declining to a low of $572 in 2018. Since then, average rent has rebounded, reaching $740 in 2022. This fluctuation in rent prices, coupled with the increasing renter population, suggests a complex rental market influenced by factors such as housing availability and local economic conditions.
Looking at the most recent data, the average home price in zip code 61250 continued to rise, reaching $151,497 in 2023 and $152,308 in 2024. This represents a 2.4% increase from 2022 to 2023 and a further 0.5% increase from 2023 to 2024. Concurrently, federal interest rates have significantly increased, rising to 5.02% in 2023 and 5.33% in 2024. 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 zip code 61250 will continue to rise, albeit at a more moderate pace. Based on historical data and current economic indicators, we project average home prices could reach approximately $165,000 to $170,000 by 2029. Average rent prices are expected to follow a similar upward trajectory, potentially reaching $800 to $850 per month within the same timeframe.
In summary, zip code 61250 has experienced a gradual shift towards a higher proportion of renters, coinciding with rising average home prices and fluctuating rent costs. The interplay between federal interest rates, housing prices, and homeownership rates underscores the complex dynamics influencing the local real estate market. As the area continues to evolve, these trends will likely shape the future landscape of housing in Erie, Illinois.
