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Flora, Illinois: Rising Home Values and Ownership Rates in a Small Midwestern Community
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
Flora, Illinois, is a small Midwestern community with a population of 4,961 as of 2022. Over the past decade, the city has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The overall trend shows a slight increase in homeownership, rising average home prices, and gradually increasing average rent prices.
The homeownership rate in Flora has shown a generally upward trend from 2013 to 2022. In 2013, the homeownership rate was 65%, which increased to 70% by 2022. This rise coincided with a significant increase in average home prices. In 2013, the average home price was $58,825, which steadily rose to $83,367 by 2022, representing a 41.7% increase over this period. The most substantial year-over-year increase occurred between 2014 and 2015, when average home prices jumped from $61,505 to $67,933, a 10.5% rise.
Federal interest rates have played a crucial role in shaping homeownership trends in Flora. From 2013 to 2016, interest rates remained exceptionally low, ranging from 0.09% to 0.40%. During this period, homeownership rates increased from 65% to 66%, likely due to more affordable financing options. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates fluctuated but remained relatively stable, suggesting that other local factors may have influenced housing decisions.
The renter population in Flora has inversely mirrored the homeownership trend. In 2013, 35% of the population were renters, which decreased to 30% by 2022. Despite this decrease in the renter population, average rent prices have shown an upward trend. In 2013, the average rent was $540, which increased to $700 by 2022, a 29.6% rise. This increase in rent prices, despite a decreasing renter population, may indicate a tightening rental market or improvements in rental property quality.
In 2023 and 2024, Flora's housing market continued to evolve. The average home price in 2023 reached $87,576, a 5.1% increase from 2022. In 2024, it further rose to $88,742, showing a slower growth rate of 1.3%. Interestingly, federal interest rates also saw significant increases during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Looking ahead, based on the observed trends, we can predict that average home prices in Flora will continue to rise, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach around $95,000 to $100,000, assuming a continued annual growth rate of 1.5% to 2.5%. Average rent prices are also expected to increase, potentially reaching $750 to $800 per month in the next five years, based on the current growth trajectory.
In summary, Flora has experienced a gradual increase in homeownership rates and rising housing prices over the past decade. The interplay between federal interest rates, local economic conditions, and housing market dynamics has shaped these trends. As the city moves forward, it will likely continue to see moderate growth in both home values and rental prices, reflecting ongoing changes in its housing market and broader economic factors.
