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Average Home Values and Ownership in Zip Code 62028: A Decade of Change in Elsah, 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 62028, encompassing Elsah in Illinois, presents an intriguing mix of housing trends over the past decade. This small community, with a population of 1,088 in 2022, has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic shifts and local dynamics.
The homeownership rate in zip code 62028 has shown a general downward trend from 2013 to 2022, despite some fluctuations. In 2013, the homeownership rate stood at 86%, reaching a peak of 91% in 2016 before declining to 81% in 2022. This overall decrease in homeownership coincides with a significant increase in average home prices. The average home price rose from $120,895 in 2013 to $158,015 in 2022, representing a 30.7% increase over this period.
Examining the relationship between federal interest rates and homeownership rates reveals some interesting patterns. The period from 2013 to 2016, when homeownership rates were highest (ranging from 86% to 91%), coincided with historically low interest rates (0.11% to 0.40%). However, as interest rates began to rise more substantially from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a general decline, dropping to 81% by 2022. This trend aligns with the general economic principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter percentage in zip code 62028 has shown an overall increase from 14% in 2013 to 19% in 2022, inversely mirroring the homeownership trend. Interestingly, average rent prices have displayed significant volatility during this period. The average rent peaked at $1,212 in 2014 before experiencing a dramatic decline to $574 in 2020, followed by a rebound to $578 in 2022. This fluctuation in rent prices doesn't show a clear correlation with the increasing renter percentage, suggesting that other factors, such as local economic conditions or housing supply, may be influencing rent prices more strongly than demand from renters.
Looking at the most recent data, the average home price in zip code 62028 continued its upward trajectory, reaching $165,103 in 2023 and further increasing to $173,058 in 2024. This represents a 9.5% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which marks the highest levels in over a decade.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 62028 will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. We project average home prices could reach approximately $190,000 to $200,000 by 2029. For average rent prices, given their historical volatility, predictions are less certain. However, if the trend of increasing renter percentages continues, we may see a gradual upward pressure on rents, potentially reaching an average of $650 to $700 per month by 2029.
In summary, zip code 62028 has experienced a gradual shift towards more renters and higher average home prices over the past decade. The inverse relationship between rising home prices and declining homeownership rates, coupled with the recent sharp increase in interest rates, suggests a challenging environment for potential homebuyers. The volatility in rent prices adds an element of unpredictability to the rental market. As we look forward, the interplay between these factors will likely continue to shape the housing landscape in this Illinois community.
