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Fairbury, Illinois: Rising Home Values and Stable Ownership in a Historic Midwestern City
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
Fairbury, Illinois, a small city founded in 1857, has experienced significant changes in its housing market over the past decade. This Midwestern community has seen notable shifts in homeownership rates and property values, reflecting broader economic trends and local dynamics.
Between 2013 and 2022, Fairbury's homeownership rate remained relatively stable, starting at 69% in 2013 and ending at 67% in 2022. During this period, average home prices in the city showed a consistent upward trend. The average home price rose from $103,244 in 2013 to $142,246 in 2022, representing a substantial 37.8% growth over nine years. This increase in home values did not significantly impact homeownership rates, suggesting other factors were maintaining the balance between owners and renters.
Federal interest rates exhibited a general downward trend from 2013 to 2021, decreasing from 0.11% to 0.08%. This period of low interest rates coincided with relatively stable homeownership rates in Fairbury, which hovered around 70%. The low interest rate environment likely contributed to maintaining these homeownership levels by making mortgages more affordable for potential buyers.
Rental trends in Fairbury show an interesting pattern. The percentage of renters increased slightly from 31% in 2013 to 33% in 2022. Concurrently, average rent prices rose significantly, from $594 in 2013 to $803 in 2022, a 35.2% increase. This rise in rent prices outpaced the growth in the renter population, which only saw a modest increase. The city's population declined from 4,067 in 2013 to 3,939 in 2022, potentially contributing to the rental market dynamics.
In 2023 and 2024, Fairbury's housing market continued its upward trajectory. The average home price reached $150,713 in 2023 and further increased to $157,227 in 2024, representing a 10.5% growth over two years. This period also saw a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, marking a substantial shift from the previous low-interest environment.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both home prices and rent in Fairbury over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $180,000 by 2029. Similarly, average rent prices are likely to continue rising, possibly exceeding $900 per month within the same timeframe. These projections assume a continuation of current economic conditions and local market factors.
In summary, Fairbury has experienced a steady increase in both home values and rent prices over the past decade, despite a slight population decline. The city has maintained a relatively stable homeownership rate, even as property values and rents have risen significantly. The recent sharp increase in interest rates, coupled with continuing property value appreciation, may present new challenges for potential homebuyers in the coming years, potentially influencing the balance between homeownership and renting in this Illinois city.
