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Average Home Values and Ownership in Zip Code 62230: Steady Growth Amidst Rental Market Fluctuations
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 62230, located in Breese, Illinois, has experienced significant changes in its housing market over the past decade. This area, with a population of 4,194 in 2022, has seen fluctuations in homeownership rates and substantial increases in both average home prices and average rent prices. The homeownership rate in zip code 62230 has remained relatively stable, with a slight decline from 86% in 2014 to 82% in 2022. Despite this minor decrease, the average home prices have shown a consistent upward trend. In 2010, the average home price was $160,288, which steadily increased to $221,466 by 2022, representing a substantial 38.2% growth over this period. This trend suggests that while fewer residents are becoming homeowners, those who do own homes are seeing significant appreciation in their property values.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2010 to 2016, interest rates remained exceptionally low, hovering around 0.1% to 0.4%. During this period, homeownership rates in zip code 62230 were at their highest, reaching 86% in 2014 and maintaining that level through 2016. As interest rates began to rise from 2017 onwards, there was a corresponding slight decline in homeownership rates, dropping to 82% by 2022 when the federal interest rate reached 1.68%.
The rental market in zip code 62230 has also experienced significant changes. The percentage of renters increased from 13% in 2014 to 18% in 2022, indicating a growing preference or necessity for rental housing. Concurrently, average rent prices have shown considerable volatility. In 2013, the average rent was $746, which peaked at $988 in 2018 before declining to $815 in 2022. This represents a 9.2% increase in average rent prices from 2013 to 2022, despite the fluctuations in between.
Looking at the most recent data, the average home price in zip code 62230 reached $225,802 in 2023 and further increased to $234,812 in 2024. This continuous rise in home values is occurring despite the significant increase in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, yet the housing market in this area continues to appreciate.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 62230 will continue to rise, potentially reaching around $275,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the recent acceleration in price growth. For average rent prices, we expect a more moderate increase, potentially reaching about $900 per month by 2029, assuming the current balance between supply and demand in the rental market remains relatively stable.
In summary, zip code 62230 has demonstrated a robust housing market with steadily increasing home values, despite a slight decrease in homeownership rates. The rental market has grown, both in terms of the percentage of renters and average rent prices, although with more volatility than the homeownership market. The area's resilience in maintaining strong home price growth, even in the face of rising interest rates, suggests a continuing demand for housing in this Breese zip code.
