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Average Home Values and Ownership in Zip Code 61722: Arrowsmith's Resilient Housing Market
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 61722, located in Arrowsmith, Illinois, showcases an interesting dynamic between homeownership and rental markets. This rural area has experienced fluctuations in its housing market over the past decade, with a general trend towards increased homeownership and rising property values.
The homeownership rate in zip code 61722 has shown a notable increase from 2013 to 2022. In 2013, 85% of residents were homeowners, and this figure rose to 88% by 2022. This upward trend in homeownership coincided with a steady increase in average home prices. In 2013, the average home price was $122,232, which grew to $145,738 by 2022, representing a 19.2% increase over nine years. This correlation suggests that rising property values have not deterred homeownership in the area, possibly indicating a strong local economy or desirable living conditions.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 61722. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained stable at around 83-85%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates paradoxically increased to 88%. This suggests that other local factors may have outweighed the impact of rising interest rates on homeownership decisions in this particular area.
The rental market in zip code 61722 has experienced its own set of changes. The percentage of renters decreased from 18% in 2018 to 12% in 2022. Despite this decline in the renter population, average rent prices have shown a consistent upward trend. In 2013, the average rent was $585, which increased to $923 by 2022, representing a substantial 57.8% rise. This significant increase in rent prices, coupled with a decreasing renter population, suggests a potential shortage of rental properties or an increase in the quality of available rentals.
Looking at the most recent data, the average home price in zip code 61722 reached $150,699 in 2023 and further increased to $160,265 in 2024. This represents a 6.3% year-over-year increase, indicating a continued strong housing market in the area. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, which are significantly higher than the previous decade. Despite these elevated interest rates, the housing market in this zip code appears to remain robust.
Based on the observed trends, we can forecast the following for the next five years: Average home prices are likely to continue their upward trajectory, potentially reaching around $185,000 to $190,000 by 2029. Rent prices may also continue to rise, albeit at a slower pace, possibly reaching an average of $1,100 to $1,200 per month. However, if the current trend of increasing homeownership persists, we might see a stabilization or slight decrease in rent prices due to reduced demand for rental properties.
In summary, zip code 61722 has demonstrated a strong trend towards homeownership, with increasing property values and rising average rents. The area has shown resilience in its housing market, maintaining growth despite fluctuations in interest rates. The coming years are likely to see continued appreciation in home values and a potential rebalancing of the rental market as more residents transition to homeownership.
