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Average Home Values and Ownership in Zip Code 61834: Danville'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 61834, located in Danville, Illinois, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, covering 119.64 square miles, has seen fluctuations in its population and housing market dynamics, reflecting broader economic trends and local factors.
The homeownership rate in zip code 61834 has shown a general upward trend from 2013 to 2020, with some fluctuations. In 2013, the homeownership rate was 70%, which increased to 74% by 2017. This upward trend coincided with a steady increase in average home prices. For instance, the average home price rose from $100,289 in 2013 to $114,860 in 2017, representing a 14.5% increase over four years. This positive correlation suggests that rising home values may have encouraged more residents to invest in homeownership during this period.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 61834. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. This low-interest environment likely contributed to the increase in homeownership rates, which peaked at 74% in 2017. As interest rates began to rise more significantly from 2017 onwards, reaching 2.16% by 2019, we observe a slight decline in homeownership rates to 73% in 2018 and 2019.
Renter percentages and average rent prices in zip code 61834 have shown an inverse relationship to homeownership trends. As homeownership increased, the percentage of renters decreased from 30% in 2013 to 26% in 2017. However, average rent prices still rose during this period, from $596 in 2013 to $643 in 2017, a 7.9% increase. This trend suggests that despite a smaller renter population, demand for rental properties remained strong, possibly due to factors such as population growth or changes in housing preferences.
In 2023 and 2024, zip code 61834 experienced a significant surge in average home prices. The average home price reached $155,121 in 2023 and further increased to $159,070 in 2024, representing a 9% rise from 2022 to 2024. This sharp increase coincides with higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that average home prices in zip code 61834 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace. Given the recent sharp increases, we might expect a more moderate annual growth rate of 3-5%. Average rent prices are also projected to rise, potentially reaching around $800-$850 per month by 2029, assuming a continuation of the current trend.
In summary, zip code 61834 has demonstrated a complex interplay between homeownership rates, average home prices, and rental market dynamics. The area has seen a general trend towards increased homeownership, particularly during periods of low interest rates, coupled with rising property values. However, recent sharp increases in both home prices and interest rates may present new challenges for the local housing market, potentially affecting affordability and future homeownership rates.
