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Average Home Values and Ownership in Zip Code 61554: Pekin's Shifting Housing Landscape
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 61554, located in Pekin, Illinois, has experienced notable changes in its housing market over the past decade. The area has seen a gradual increase in average home values alongside a slight shift in homeownership rates, reflecting broader economic trends and local market dynamics. From 2013 to 2022, the homeownership rate in zip code 61554 experienced a modest decline, moving from 73% to 71%. This change coincided with a significant increase in average home prices, which rose from $98,791 in 2013 to $112,840 in 2022, marking a 14.2% increase. Despite this price growth, the relatively small decrease in homeownership suggests a resilient local housing market.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. Between 2013 and 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate remained steady at 72-73%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, a slight decline in homeownership to 71% was observed. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter percentage in zip code 61554 has seen a modest increase, rising from 27% in 2013 to 29% in 2022. This trend coincides with fluctuations in average rent prices. The average rent in 2013 was $744, which increased to $804 by 2022, representing an 8% rise over the decade. The population of the zip code decreased from 44,081 in 2013 to 41,631 in 2022, which may have influenced the rental market dynamics.
Recent data shows that the average home price in zip code 61554 continued its upward trajectory, reaching $116,971 in 2023 and further increasing to $125,500 in 2024. This represents a significant 11.2% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates in the area.
Predictive models forecast that average home prices in zip code 61554 will continue to rise, potentially reaching around $140,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $900 per month within the same timeframe. These projections are based on the historical trends observed and assume relatively stable economic conditions.
In conclusion, zip code 61554 has demonstrated a gradual shift towards a slightly higher proportion of renters, coupled with increasing average home and rent prices. The area has maintained a relatively high homeownership rate despite rising home prices, suggesting a strong local real estate market. The recent sharp increases in both home prices and interest rates will likely play a crucial role in shaping the area's housing landscape in the coming years.
