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Average Home Values and Ownership in Zip Code 61856: Monticello's Dynamic 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 61856, corresponding to Monticello in Illinois, has experienced significant changes in its housing market over the past decade. This area has shown notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic changes and local market dynamics.
The homeownership rate in Monticello has fluctuated over the years, with a general trend towards slight decline followed by a recent uptick. In 2013, the homeownership rate stood at 84%, gradually decreasing to 78% by 2018. However, there has been a reversal in recent years, with the rate increasing to 83% in 2022. This trend correlates with average home prices in the area. From 2013 to 2022, average home prices rose steadily from $173,302 to $243,622, representing a significant increase of 40.6% over this period.
Federal interest rates have played a role in shaping homeownership trends in Monticello. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1-0.4%. During this time, homeownership rates remained relatively stable at around 83-84%. As interest rates began to rise from 2017 onwards, reaching 2.16% by 2019, we observed a corresponding dip in homeownership rates to 79%. However, the sharp drop in interest rates to 0.08% in 2021 coincided with a rebound in homeownership to 81%, further increasing to 83% in 2022 despite rising rates.
Renter percentages in Monticello have shown an inverse relationship to homeownership rates. The renter population increased from 16% in 2013 to a peak of 22% in 2018, before declining to 17% in 2022. Average rent prices have generally trended upwards during this period, rising from $778 in 2013 to $1,013 in 2022, an increase of 30.2%. Notably, there was a significant spike in average rent to $1,214 in 2021, coinciding with a population increase to 8,135 residents, before moderating in 2022.
Looking at the most recent data, average home prices in Monticello reached $244,612 in 2023, showing continued growth from previous years. However, in 2024, there's a slight decrease to $242,662, indicating a potential cooling in the housing market. This coincides with federal interest rates rising to 5.33% in 2024, the highest level in over two decades, which could be influencing buyer behavior and home prices.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in Monticello to continue a modest upward trajectory, albeit at a slower pace than seen in recent years due to higher interest rates. Average rent prices are expected to stabilize and potentially see moderate increases, driven by population growth and housing demand in the area.
In summary, Monticello has experienced a resurgence in homeownership rates in recent years, despite rising home prices. The interplay between federal interest rates, housing prices, and ownership rates highlights the complex dynamics of the local real estate market. The rental market has shown volatility, with significant fluctuations in both renter percentages and average rent prices. Moving forward, we expect a period of stabilization in both the homeownership and rental markets, with modest growth in property values and rent prices as the market adjusts to higher interest rates and evolving economic conditions.
