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Downtown Peoria: Stable Homeownership Amid Fluctuating Home Values
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
Downtown Peoria, located in Peoria, Illinois, is a vibrant urban neighborhood characterized by a predominantly renter-occupied housing market. This area has experienced fluctuations in population and housing dynamics over the past decade, with a current population of 2,940 as of 2022. The neighborhood has consistently maintained a high percentage of rental properties, reflecting its urban character and appeal to those seeking city living.
The homeownership rate in Downtown Peoria has remained relatively stable, hovering around 10-11% from 2013 to 2022. Despite this consistency, average home prices have shown some volatility. In 2012, the average home price was $151,098, which peaked at $156,455 in 2014. However, prices experienced a significant decline, reaching a low of $123,442 in 2019. Since then, there has been a gradual recovery, with the average home price rising to $138,195 in 2022. This trend suggests that while homeownership rates have remained steady, the value of properties in the area has been subject to market fluctuations.
The relationship between federal interest rates and homeownership rates in Downtown Peoria appears to be less pronounced than in many other areas. Despite historically low interest rates between 2013 and 2021, ranging from 0.08% to 1.83%, the homeownership rate remained consistently low. This suggests that other factors, such as the urban lifestyle preferences or the availability of suitable properties for purchase, may have a stronger influence on homeownership in this neighborhood than interest rates alone.
Rental trends in Downtown Peoria have shown a clear upward trajectory. The percentage of renter-occupied units has remained high, consistently around 89-90% from 2013 to 2022. Average rent prices have steadily increased over this period, rising from $491 in 2013 to $565 in 2021, representing a 15% increase. This trend aligns with the neighborhood's consistent popularity among renters and suggests a strong demand for rental properties in the area. The slight population fluctuations over the years, with 3,351 residents in 2019 increasing to 3,643 in 2020 before declining to 2,940 in 2022, may have influenced rental market dynamics, potentially contributing to the variations in rent prices.
In 2023, the average home price in Downtown Peoria decreased to $131,810, followed by a slight increase to $135,060 in 2024. This recent trend occurs against the backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying activity in the area, potentially affecting both home prices and the rental market.
Looking ahead, predictive models suggest that average home prices in Downtown Peoria may continue to experience moderate growth over the next five years, potentially reaching around $145,000 by 2029. Average rent prices are also expected to maintain their upward trajectory, potentially approaching $600 per month within the same timeframe. These projections are based on historical trends and current market conditions, assuming relatively stable economic factors.
In summary, Downtown Peoria presents a unique housing market characterized by a strong preference for renting, with over 88% of residents choosing to rent rather than own. While home prices have shown some volatility, they appear to be on a recovery path. The steady increase in average rent prices reflects the area's consistent appeal to renters. As the neighborhood continues to evolve, it will be important to monitor how these housing trends interact with broader economic factors and local development initiatives.
