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Eureka, Illinois: Home Values Rise Amidst Market 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
Eureka, located in Illinois, is a small yet vibrant community with a population of 6,386 as of 2022. This charming city, spanning just 2.73 square miles, has experienced interesting shifts in homeownership rates and housing prices over the past decade. The overall trend shows a slight decrease in homeownership, while average home prices have generally increased, and average rent prices have fluctuated.
The homeownership rate in Eureka has seen some variation over the years. In 2013, 70% of residents were homeowners. This percentage increased to a peak of 76% in 2017 before declining to 68% in 2022. During this period, average home prices in the city have shown a general upward trend. In 2013, the average home price was $138,764, which increased to $173,130 by 2022, representing a 24.8% increase over nine years.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, interest rates remained very low, hovering around 0.1% to 0.4%. During this period, homeownership in Eureka increased from 70% to 74%. As interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, we see a corresponding decline in homeownership rates from 76% in 2017 to 68% in 2022.
The renter population in Eureka has shown an inverse relationship to homeownership trends. In 2013, 30% of residents were renters, which decreased to a low of 24% in 2017 before increasing to 32% in 2022. Average rent prices have fluctuated during this period. In 2013, the average rent was $596, which peaked at $701 in 2015 before decreasing to $635 in 2022. It's worth noting that despite the increase in the renter population from 2017 to 2022, average rent prices did not show a consistent upward trend, possibly due to other economic factors or local housing policies.
In 2023, the average home price in Eureka reached $176,587, continuing the upward trend. This increase occurred despite a significant rise in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has further increased to $181,080, while federal interest rates have slightly risen to 5.33%. These figures indicate a resilient housing market in Eureka, maintaining growth even in the face of higher borrowing costs.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Eureka are likely to continue their upward trajectory over the next five years. However, the rate of increase may moderate due to the higher interest rates. Average rent prices, which have shown more volatility, may stabilize or see modest increases as the renter population potentially grows in response to higher homeownership costs.
In summary, Eureka has experienced a gradual shift towards a slightly higher proportion of renters over the past decade, although homeowners still constitute the majority. Average home prices have shown consistent growth, even in the face of rising interest rates, indicating a strong local housing market. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics of the real estate market in this Illinois city.
