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Harvard, Illinois: Rising Home Values Amidst 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
Harvard, located in Illinois, is a vibrant community with a population of 12,584 as of 2022. This small city, spanning 8.36 square miles, has experienced interesting shifts in homeownership and housing prices over the past decade. The homeownership rate in Harvard has shown fluctuations, with a general trend towards increased owner-occupancy in recent years. In 2013, the homeownership rate stood at 70%, and after some variations, it reached 68% in 2022. This upward trend in homeownership coincides with changes in average home prices. The average home price in Harvard has seen significant growth, rising from $141,348 in 2010 to $225,422 in 2022, representing a 59.5% increase over this period.
The relationship between federal interest rates and homeownership rates in Harvard shows some correlation. As interest rates remained low from 2010 to 2021, ranging between 0.08% and 2.16%, homeownership rates generally remained stable or increased slightly. For instance, when interest rates were at 0.08% in 2021, the homeownership rate was 65%. The slight increase in homeownership to 68% in 2022 occurred despite a rise in interest rates to 1.68%, suggesting other local factors may have influenced this trend.
Renter percentages in Harvard have shown an inverse relationship to homeownership rates, naturally. The percentage of renters decreased from 37% in 2016 to 32% in 2022. Interestingly, average rent prices have remained relatively stable during this period, with some fluctuations. The average rent was $1,110 in 2016 and decreased slightly to $1,066 in 2022, representing a 4% decrease. This stability in rent prices, despite the decrease in renter percentage, could be attributed to various factors including local economic conditions and housing supply.
In 2023 and 2024, Harvard has seen continued growth in average home prices. The average home price reached $231,940 in 2023 and further increased to $242,557 in 2024, representing a 7.6% increase from 2022 to 2024. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for some buyers.
Looking ahead, based on the historical data and recent trends, we can forecast potential 5-year trends for Harvard. Average home prices are likely to continue their upward trajectory, potentially reaching around $280,000 to $300,000 by 2029, assuming a similar growth rate. Average rent prices may see moderate increases, potentially reaching $1,150 to $1,200 per month, as demand for rental properties could increase if rising home prices and interest rates make homeownership less accessible for some residents.
In summary, Harvard has experienced a trend towards increased homeownership and rising average home prices over the past decade. The stability in rent prices, despite fluctuations in renter percentages, suggests a balanced rental market. The recent surge in home prices, even in the face of rising interest rates, indicates strong demand for housing in the area. These trends point to a dynamic and evolving housing market in Harvard, with potential for continued growth and changes in the coming years.
