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Clifton, Illinois: Rising Home Values and Ownership Rates Amid Interest Rate Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Clifton, Illinois, a small community of 2,535 residents as of 2022, occupies a compact area of 0.93 square miles. This village has experienced significant changes in homeownership rates and property values over the past decade, reflecting broader economic trends and local market dynamics. Homeownership in Clifton has shown an upward trend, increasing from 73% in 2013 to 80% in 2022. This rise coincided with a substantial increase in average home prices, which grew from $109,862 in 2012 to $185,903 in 2022, representing a 69% increase. The parallel growth in ownership rates and home prices suggests that despite rising costs, more residents were able to enter the housing market, possibly due to favorable economic conditions or local factors encouraging homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in Clifton. From 2013 to 2016, historically low interest rates ranging from 0.11% to 0.40% likely contributed to the increase in homeownership from 73% to 78%. As interest rates rose more significantly from 2017 (1%) to 2019 (2.16%), the ownership rate remained relatively stable between 75% and 79%, indicating a resilient local housing market.
The renter population in Clifton has decreased as homeownership increased. The percentage of renters declined from 27% in 2013 to 20% in 2022. Despite this decrease, average rent prices have shown a notable upward trajectory, rising from $639 in 2013 to $923 in 2022, a 44.4% increase. This trend suggests that while fewer residents are renting, those who do are facing higher costs, possibly due to reduced rental inventory and improved quality of available rental properties.
Recent data shows the average home price in Clifton reached $196,618 in 2023, continuing the growth trend. However, in 2024, there was a slight decrease to $195,386, potentially indicating a stabilization in the local housing market. This coincides with federal interest rates rising to 5.33% in 2024, which may have contributed to cooling home prices by making mortgages more expensive for potential buyers.
Predictive models forecast that average home prices in Clifton will continue to rise moderately over the next five years, albeit at a slower pace than observed in the past decade. This projection is based on the historical growth pattern and the current higher interest rate environment. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and the overall appreciation of real estate in the area.
In summary, Clifton has experienced a significant increase in homeownership rates and property values over the past decade. The interplay between federal interest rates, local economic conditions, and housing market dynamics has shaped these trends. While homeownership has become more prevalent, renters face rising costs in a tightening rental market. The recent stabilization in home prices and higher interest rates may signal a new phase in the local real estate landscape, potentially affecting future homeownership rates and property values in this Illinois community.
