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East Dubuque's Housing Market: Rising Home Values and Shifting Ownership Patterns along the Mississippi
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
East Dubuque, Illinois, a small city along the Mississippi River known for its scenic views and proximity to Iowa, has experienced notable shifts in homeownership rates and housing market dynamics over the past decade. The city has maintained a relatively high percentage of owner-occupied housing, though with some fluctuations, while average home prices have shown a general upward trend, particularly in recent years.
The homeownership rate in East Dubuque has varied between 2013 and 2022. In 2013, the city had an 80% homeownership rate, which peaked at 82% in 2017. However, by 2022, this figure had decreased to 76%. Concurrently, average home prices in East Dubuque have demonstrated a consistent upward trajectory. In 2013, the average home price was $125,275, and by 2022, it had risen significantly to $187,287, representing a 49.5% increase over this period. This trend suggests that while home values have appreciated considerably, it may have become more challenging for some residents to enter the housing market as owners.
Federal interest rates have played a role in shaping homeownership trends in East Dubuque. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 78-80%. As interest rates began to rise more noticeably from 2017 onwards, reaching 1.68% by 2022, there was a slight decline in homeownership rates to 76%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in East Dubuque have shown an inverse relationship to homeownership rates, increasing from 17% in 2013 to 24% in 2022. Average rent prices have fluctuated over this period, starting at $646 in 2013, peaking at $735 in 2016 and 2018, and then settling at $669 in 2022. The population of East Dubuque has decreased slightly from 3,849 in 2013 to 3,633 in 2022, which may have influenced the rental market dynamics, potentially contributing to the relatively stable rent prices despite the increase in renter percentage.
In 2023, the average home price in East Dubuque reached $193,551, continuing the upward trend observed in previous years. The federal interest rate for 2023 was 5.02%, a significant increase from the previous year. Moving into 2024, the average home price has further increased to $206,991, while the federal interest rate has risen slightly to 5.33%. These higher interest rates may impact affordability and could potentially influence future homeownership rates in the city.
Looking ahead, based on the observed trends, it's projected that average home prices in East Dubuque will continue to rise over the next five years, potentially reaching around $240,000 by 2029. Rent prices, which have been more volatile, may see a moderate increase, possibly reaching an average of $725-$750 per month by 2029. However, these projections could be influenced by various factors including economic conditions, local development, and broader housing market trends.
In summary, East Dubuque has experienced a gradual shift towards more renter-occupied housing over the past decade, alongside a substantial increase in average home prices. The interplay between federal interest rates, housing affordability, and demographic changes has shaped these trends. As the city moves forward, the balance between homeownership and renting, as well as the trajectory of housing costs, will be crucial factors in shaping the community's residential landscape.
