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Canton, Illinois: Rising Home Values and Ownership Amidst Interest Rate 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
Canton, located in Illinois, is a vibrant community with a rich history and evolving demographics. Over the past decade, the city has experienced notable shifts in homeownership rates and housing market dynamics. The overall trend shows an increase in homeownership, with average home prices rising steadily, while average rent prices have fluctuated.
From 2013 to 2022, Canton saw a significant increase in homeownership rates, rising from 65% to 72%. This upward trend in homeownership coincided with a steady increase in average home prices. In 2013, the average home price was $62,206, and by 2022, it had risen to $86,808, representing a substantial 39.5% increase over the decade. This positive correlation suggests that as home values appreciated, more residents were motivated to invest in property ownership.
The relationship between federal interest rates and homeownership rates in Canton aligns with well-established economic principles. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 65-67%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates in Canton actually increased to 72%. This unusual trend might be attributed to other local economic factors or a desire to secure property before potential further rate increases.
Conversely, the percentage of renters in Canton decreased from 35% in 2013 to 28% in 2022. Despite this decline in the renter population, average rent prices showed some volatility. In 2013, the average rent was $751, which decreased to $637 by 2015. However, rent prices then began to climb, reaching $699 by 2022. This fluctuation in rent prices, despite a decreasing renter population, could be indicative of changes in housing quality, local economic conditions, or shifts in the types of rental properties available.
In 2023 and 2024, Canton's housing market continued its upward trajectory. The average home price reached $89,325 in 2023 and further increased to $89,558 in 2024. This represents a modest but steady growth of 3.17% from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends and housing affordability in the city.
Looking ahead, based on the historical data and current trends, we can project the following 5-year forecast for Canton: Average home prices are expected to continue their upward trend, potentially reaching around $95,000 to $100,000 by 2029. This projection assumes a continuation of the steady growth observed in recent years, factoring in potential economic fluctuations. Average rent prices may stabilize or show moderate increases, potentially reaching $750 to $800 per month by 2029. This forecast takes into account the historical volatility in rent prices and the declining renter population.
In summary, Canton has experienced a notable increase in homeownership rates over the past decade, accompanied by rising average home prices. Despite higher interest rates, the trend towards homeownership has persisted. The rental market has seen a decline in the percentage of renters, with fluctuating average rent prices. As the city moves forward, it is likely to see continued growth in home values and a stabilizing rental market, reflecting the evolving preferences and economic conditions of its residents.
