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Granite City's Rising Home Values: An Industrial Hub's Housing Market Resilience
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Granite City, Illinois, a vibrant community in Madison County, is known for its rich industrial heritage and proximity to St. Louis, Missouri. Over the past decade, this city has experienced notable shifts in its housing market, with changing dynamics between homeownership and rental trends. The overall trajectory shows a gradual increase in homeownership rates, accompanied by fluctuations in average home prices and rent costs.
The trend in homeownership in Granite City has shown a general upward movement from 2013 to 2022. In 2013, the homeownership rate stood at 70%, and by 2022, it had increased to 71%. This rise in homeownership coincides with an overall increase in average home prices. In 2013, the average home price was $62,623, which steadily climbed to $96,366 by 2022, representing a significant 53.9% increase over the decade. This trend suggests a growing preference for homeownership despite rising property values.
Federal interest rates have played a crucial role in shaping homeownership trends in Granite City. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 67% to 68%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 66% in 2019. However, the subsequent drop in interest rates to 0.38% in 2020 and 0.08% in 2021 corresponded with a rebound in homeownership rates to 67% and 69% respectively, illustrating the inverse relationship between interest rates and homeownership.
Renter percentages in Granite City have generally decreased as homeownership rates increased. In 2013, the renter-occupied rate was 30%, which slightly increased to 34% in 2019 before declining to 29% in 2022. Average rent prices, however, have shown an upward trend. The average rent rose from $684 in 2013 to $832 in 2021, an increase of 21.6%. Interestingly, there was a decrease to $748 in 2022, possibly reflecting changes in local economic conditions or housing policies. The city's declining population, from 33,421 in 2013 to 31,555 in 2022, may have influenced these rental market dynamics.
In 2023 and 2024, Granite City's housing market continued to evolve. The average home price in 2023 reached $100,250, surpassing the $100,000 mark for the first time in the observed period. This trend continued into 2024, with average home prices rising further to $106,717. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the city.
Looking ahead, predictive models suggest that average home prices in Granite City are likely to continue their upward trajectory over the next five years, potentially reaching around $120,000 by 2029. Rent prices, while more volatile, are also expected to show a gradual increase, possibly reaching an average of $900 per month in the same timeframe. These projections assume continued economic stability and gradual population changes in the area.
In summary, Granite City has experienced a notable increase in homeownership rates and average home prices over the past decade, despite fluctuations in federal interest rates. The rental market has seen more variability, with recent trends showing a decrease in the percentage of renters alongside generally rising average rent prices. The city's housing market demonstrates resilience and growth, with recent data indicating continued appreciation in property values amidst rising interest rates.
