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Average Home Values and Ownership in Zip Code 62254: Lebanon's Growing 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
Lebanon, located in zip code 62254 in Illinois, has experienced notable demographic and housing market shifts over the past decade. This analysis explores the trends in homeownership, average home prices, and average rent prices in this area, providing insights into the local real estate landscape. The homeownership rate in Lebanon has shown slight fluctuations over the years, with a general trend towards stability. In 2013, the homeownership rate stood at 77%, and by 2022, it remained at the same level. However, there were some variations in between, with the rate dipping to 71% in 2018 before recovering. During this period, average home prices in the area have seen a steady increase. In 2013, the average home price was $141,015, and by 2022, it had risen to $188,862, representing a significant 33.9% increase over nine years.
Federal interest rates have played a role in shaping homeownership trends in Lebanon. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period coincided with a relatively stable homeownership rate, hovering between 71% and 77%. The low interest rates likely contributed to maintaining homeownership levels by making mortgages more affordable for potential buyers.
Renter percentages in Lebanon have shown an inverse relationship to homeownership rates, naturally. The renter population fluctuated between 23% and 29% from 2013 to 2022. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $976, which increased to $1,101 in 2018, representing a 12.8% rise. However, by 2022, the average rent had decreased slightly to $1,054. This fluctuation in rent prices doesn't show a clear correlation with the percentage of renters, suggesting that other factors, such as local economic conditions or housing supply, may have influenced rent prices.
Looking at the most recent data, the average home price in Lebanon continued its upward trend, reaching $194,449 in 2023 and $196,210 in 2024. This represents a 3.9% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and home price growth in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Lebanon will continue to rise, albeit at a more moderate pace due to the higher interest rate environment. By 2029, average home prices could potentially reach around $220,000 to $230,000, assuming a conservative annual growth rate of 2-3%. Average rent prices are expected to follow a similar trajectory, potentially reaching $1,150 to $1,200 by 2029, based on historical trends and accounting for inflation.
In summary, Lebanon has demonstrated resilience in its housing market, with stable homeownership rates and steadily increasing average home prices over the past decade. The rental market has shown more volatility in pricing, while the proportion of renters has remained relatively stable. The recent rise in interest rates may present new challenges for the housing market, potentially moderating price growth and affecting affordability for both buyers and renters in the coming years.
