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Erie's Rising Home Values and Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Erie, Illinois: Housing Market Trends and Homeownership Shifts Erie, Illinois, a small community with a population of 2,473 as of 2022, has experienced significant changes in its housing market over the past decade. These changes are reflected in fluctuating homeownership rates, rising average home prices, and varying average rent prices. The village's housing landscape has undergone a notable transformation, particularly in recent years.
Erie's homeownership rate has shown a fluctuating trend since 2013. Starting at 81% in 2013, it peaked at 88% in 2017 and 2018. However, a substantial decline followed, with the rate dropping to 74% by 2022. This shift coincided with changes in average home prices. In 2010, the average home price in Erie was $117,000, remaining relatively stable around $120,000 until 2019. From 2020 onwards, there was a significant increase, with average home prices reaching $148,846 by 2022. This upward trend in home prices, particularly after 2020, may have contributed to the decline in homeownership rates as housing became less affordable for some residents.
The relationship between federal interest rates and homeownership rates in Erie shows some correlation. During the period of historically low interest rates from 2013 to 2018 (ranging from 0.09% to 1.83%), homeownership rates in Erie were at their highest, peaking at 88%. As interest rates began to rise more significantly in 2022 (1.68%), there was a corresponding drop in homeownership rates to 74%. This aligns with the general trend that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Erie have shown an inverse relationship to homeownership rates. The percentage of renters increased from 12% in 2018 to 26% in 2022. Average rent prices have also seen significant changes during this period. In 2013, the average rent was $698, which increased to $727 in 2014. However, there was a sharp decline to $500 in 2018, coinciding with the lowest renter percentage. Since then, average rent prices have been on an upward trajectory, reaching $841 in 2022. This increase in rent prices, coupled with rising home prices, may have contributed to the higher percentage of renters in recent years.
In 2023 and 2024, the average home prices in Erie continued to rise, reaching $152,270 in 2023 and $153,193 in 2024. This represents a slower rate of increase compared to the sharp rise seen between 2020 and 2022. Concurrently, federal interest rates have also increased significantly, standing at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the village.
Looking ahead, based on the current trends, it is predicted that average home prices in Erie may continue to increase over the next five years, but at a more moderate pace. The average home price could potentially reach around $165,000 to $170,000 by 2029. Average rent prices are also likely to continue their upward trend, potentially reaching $950 to $1,000 per month by 2029. However, these predictions assume stable economic conditions and no major policy changes.
In summary, Erie has experienced a shift from high homeownership rates to an increasing renter population over the past decade. This change has been accompanied by rising average home prices and fluctuating, but generally increasing, average rent prices. The interplay between federal interest rates, housing affordability, and demographic changes will likely continue to shape the housing market in Erie in the coming years.
