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Hamburg, Illinois: Rising Homeownership Amidst Fluctuating Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hamburg, Illinois, is a small community nestled along the Mississippi River, known for its scenic views and close-knit atmosphere. This charming village has experienced significant shifts in homeownership rates and housing market dynamics over the past decade. The town has seen a strong trend towards increased homeownership, while average home prices have shown moderate growth in recent years.
The homeownership rate in Hamburg has seen a remarkable upward trend, rising from 80% in 2015 to an impressive 98% in 2022. This substantial increase in owner-occupied housing coincided with fluctuations in average home prices. The average home price in 2021 was $156,786, slightly decreasing to $155,502 in 2022. This suggests that despite the minor dip in prices, homeownership remained highly attractive to residents.
The relationship between federal interest rates and homeownership rates in Hamburg presents an interesting case. Despite historically low interest rates between 2010 and 2021 (ranging from 0.08% to 2.16%), the most significant jump in homeownership occurred from 2019 to 2022, rising from 94% to 98%. This increase happened even as interest rates began to climb, reaching 1.68% in 2022, indicating that local factors may have played a more significant role in driving homeownership than national interest rate trends.
The percentage of renters in Hamburg has dramatically decreased over the years. In 2015, renters made up 20% of the population, but by 2022, this figure had plummeted to just 2%. The median rent price remained stable at $424 from 2016 through 2022, suggesting that the decline in renters was not due to increasing rent costs but rather a strong preference for homeownership in the community. This trend occurred despite fluctuations in population, which peaked at 998 in 2016 before settling at 796 in 2022.
Looking at the most recent data, the average home price in Hamburg was $150,789 in 2023 and $148,807 in 2024, indicating a continued slight downward trend. This occurred as federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Hamburg may continue to experience modest decreases or stabilization, given the recent downward trajectory and higher interest rates. However, the strong preference for homeownership in the community could provide a buffer against significant price drops. Rent prices, having remained stable for several years, are likely to see minimal changes, possibly with slight increases to account for inflation and maintenance costs.
In summary, Hamburg has demonstrated a remarkable shift towards homeownership, reaching near-total owner-occupation by 2022. This trend persisted despite fluctuations in average home prices and rising interest rates, suggesting strong local factors influencing housing preferences. The stability of rent prices, coupled with the declining renter population, indicates a community firmly committed to homeownership. As the village moves forward, it will be interesting to observe how these established trends interact with broader economic factors to shape the future of Hamburg's housing market.
