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Average Home Values and Ownership in Zip Code 62338: A Decade of Rising Homeownership Amid 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 62338, located in Fowler, Illinois, presents an intriguing case study of homeownership and housing market dynamics in a small, rural community. This area has experienced notable fluctuations in homeownership rates and housing prices over the past decade, with a general trend towards increased owner-occupancy and rising average home values.
The relationship between homeownership rates and average home prices in zip code 62338 shows a positive correlation. From 2013 to 2022, the percentage of owner-occupied homes increased significantly from 81% to 93%. During this same period, average home prices rose steadily from $123,306 in 2013 to $184,962 in 2022, representing a 50% increase. This trend suggests that as home values appreciated, more residents chose to invest in homeownership, possibly viewing it as a sound financial decision in a growing market.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 62338. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which coincided with a rise in homeownership from 81% to 84%. As interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, homeownership rates continued to increase, peaking at 93% in 2022. This suggests that despite rising interest rates, other factors such as local economic conditions or housing supply may have had a stronger influence on homeownership decisions in this area.
Renter percentages and average rent prices in zip code 62338 have shown an inverse relationship to homeownership trends. As the percentage of renters decreased from 19% in 2013 to 7% in 2022, average rent prices experienced volatility. Rent prices peaked at $930 in 2017 when the renter population was 16%, then declined to $732 in 2022 as the renter population dropped to 7%. This trend may indicate that as more residents transitioned to homeownership, the rental market became less competitive, leading to more stable or even decreasing rent prices.
In 2023 and 2024, zip code 62338 witnessed a continued surge in average home prices, reaching $207,732 in 2023 and $213,942 in 2024. This represents a substantial increase of 15.6% from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade. Despite these elevated interest rates, the housing market in this zip code has remained robust, suggesting strong local demand or limited housing supply.
Looking ahead, our predictive models forecast a continued upward trajectory for average home prices in zip code 62338 over the next five years. Based on historical trends and current market conditions, we anticipate average home prices could reach approximately $250,000 by 2029. Average rent prices are expected to stabilize and potentially see modest increases, potentially reaching around $800 per month by 2029, assuming the rental market share remains relatively constant.
In summary, zip code 62338 has demonstrated a strong shift towards homeownership, with rising average home prices and a decreasing renter population. The area has shown resilience in its housing market, with home values continuing to appreciate even in the face of rising interest rates. These trends suggest a robust local housing market with potential for continued growth, though future changes in economic conditions or housing policies could influence these trajectories.
