Loading Content...
Hoffman: Home Values and Ownership Trends in a Small Illinois Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hoffman, located in Illinois, is a small community that has experienced notable changes in its housing market over the past decade. The city has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local demographic shifts.
Homeownership in Hoffman has shown a general upward trend from 2013 to 2022. In 2013, the homeownership rate was 85%, which steadily increased to 91% by 2022. This rise in homeownership coincided with changes in average home prices. The average home price in 2021 was $118,916, rising to $123,560 in 2022, indicating a 3.9% increase.
The relationship between federal interest rates and homeownership rates in Hoffman appears to follow the general economic principle that lower interest rates tend to encourage homeownership. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 1.83%. During this period, homeownership rates in Hoffman increased from 85% to 92%. However, even as interest rates began to rise more sharply in 2022 to 1.68%, homeownership in the village remained high at 91%.
Renter percentages in Hoffman have shown an inverse relationship to homeownership rates, naturally decreasing as homeownership increased. In 2013, the renter percentage was 15%, which declined to 8% by 2022. Average rent prices have fluctuated over the years, with some notable changes. In 2013, the average rent was $1,030, which decreased to $696 in 2016, before rising again to $900 in 2022. These fluctuations in rent prices may be influenced by the decreasing population, which fell from 1,001 in 2013 to 746 in 2022, potentially affecting housing demand.
Looking at the most recent data from 2023 and 2024, we see that average home prices in Hoffman have slightly decreased. The average home price in 2023 was $122,856, and in 2024 it is $122,696, showing a minor decline of 0.13%. This trend occurs alongside a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in Hoffman may continue to experience modest fluctuations. If the current trend persists, we might see average home prices stabilize or potentially decrease slightly over the next five years. For rent prices, the forecast suggests a potential for gradual increases, possibly reaching around $950-$1,000 per month by 2029, assuming economic conditions remain relatively stable.
In summary, Hoffman has experienced a significant increase in homeownership rates over the past decade, reaching 91% in 2022. Average home prices have shown modest growth, while rent prices have fluctuated. The recent rise in interest rates may impact future homeownership trends and housing affordability. The village's decreasing population could continue to influence housing demand and prices in the coming years.
