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Forreston, Illinois: Rising Home Values and Ownership Rates Amid 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
Forreston, located in Illinois, is a small community with a rich history and a dynamic real estate market. Over the past decade, the village has experienced significant shifts in homeownership rates and housing prices, reflecting broader economic trends and local demographic changes. Homeownership in Forreston has shown a notable increase in recent years. In 2013, the percentage of owner-occupied homes stood at 73%. By 2022, this figure had risen dramatically to 86%, indicating a strong trend towards homeownership. This increase coincided with fluctuations in average home prices. In 2013, the average home price was $97,535, which dipped to $87,512 in 2016 before rebounding to $141,160 in 2022. This upward trajectory in both homeownership rates and home prices suggests a growing demand for property ownership in the village.
The relationship between federal interest rates and homeownership rates in Forreston reveals an interesting pattern. As interest rates remained low between 2013 and 2020, hovering around 0.1% to 0.4%, homeownership rates steadily increased. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. The sharp rise in homeownership from 80% in 2020 to 86% in 2022 occurred despite a slight increase in interest rates to 1.68% in 2022, suggesting other local factors may have played a role in driving homeownership.
Conversely, the percentage of renters in Forreston has decreased over time. In 2013, renters occupied 27% of housing units, but by 2022, this had dropped to just 14%. Interestingly, average rent prices have shown some volatility during this period. The average rent peaked at $737 in 2013, decreased to $601 in 2018, and then rose again to $793 in 2022. This increase in rent prices, coupled with the decrease in the renter population, might indicate a shortage of rental properties or a shift in the type of rental units available.
Looking at more recent data, the average home price in Forreston continued to rise, reaching $144,063 in 2023 and $147,578 in 2024. This upward trend occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These figures suggest a robust local housing market that has maintained growth even in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Forreston will continue to increase, potentially reaching around $160,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, the forecast suggests a more moderate increase, potentially reaching an average of $850 per month by 2029, assuming the current economic conditions and local market factors remain relatively stable.
In summary, Forreston has experienced a significant shift towards homeownership, with a corresponding decrease in the renter population. Average home prices have shown strong growth, particularly in recent years, while rent prices have fluctuated but ultimately trended upward. These trends, combined with the village's ability to maintain price growth even amidst rising interest rates, indicate a robust and desirable local real estate market. The continued increase in homeownership rates suggests a strong community foundation and potential for further development in Forreston.
