Loading Content...
Buckley, Illinois: Rising Home Values and Ownership Amid Interest Rate Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Buckley, Illinois, is a small community that has experienced notable shifts in its housing landscape over the past decade. The village has seen a significant increase in homeownership rates, coupled with fluctuating average home prices and rent costs. This analysis will explore these trends and their interrelationships.
From 2013 to 2022, Buckley witnessed a substantial rise in homeownership rates, climbing from 83% to 90%. During this same period, average home prices showed an upward trajectory. In 2017, the average home price was $92,391, which increased to $120,513 by 2022, representing a 30.4% growth over five years. This correlation suggests that as property values appreciated, more residents were motivated to invest in homeownership.
The federal interest rate trends appear to have influenced homeownership rates in Buckley. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.40%), homeownership remained stable at 83%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight initial dip in homeownership to 81% in 2018. However, homeownership rebounded and continued to climb, reaching 90% by 2022, despite interest rates fluctuating between 0.08% and 1.68% from 2020 to 2022. This suggests that other local factors may have played a more significant role in driving homeownership than interest rates alone.
Conversely, the percentage of renters in Buckley decreased from 17% in 2013 to 10% in 2022. Average rent prices showed considerable volatility during this period. In 2013, the average rent was $828, which peaked at $850 in 2014 before declining to $550 in 2021. Interestingly, despite the overall decrease in the renter population, average rent prices rebounded to $770 in 2022. This increase might be attributed to a tightening rental market as more properties transitioned to owner-occupied status.
In 2023, the average home price in Buckley reached $121,866, showing a slight increase from the previous year. However, 2024 saw a moderate decline to $117,729. This recent dip coincides with a significant rise in federal interest rates, which jumped to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be cooling the local housing market, potentially making mortgages less affordable for some buyers.
Looking ahead, based on the observed trends and current economic conditions, we can project potential scenarios for the next five years. Average home prices may experience moderate growth, possibly reaching around $130,000 by 2029, assuming economic stability and continued local demand. However, if interest rates remain high, this growth could be tempered. Rent prices might stabilize or see slight increases, potentially reaching an average of $800-$850 per month by 2029, as the rental market adjusts to the limited supply of rental properties.
In summary, Buckley has demonstrated a strong trend towards homeownership, with average home prices generally appreciating over time. The rental market has contracted, yet recent rent prices have shown resilience. The interplay between federal interest rates, local economic factors, and housing preferences will continue to shape Buckley's housing market in the coming years.
