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Home Values and Ownership in Zip Code 60952: Melvin's Resilient Housing Market
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
Zip code 60952, located in Melvin, Illinois, presents an intriguing case study of homeownership and rental trends in a small rural community. This area has experienced fluctuations in its ownership percentage and average home prices over the years, with a general trend towards increasing property values despite some variations in the local population.
The homeownership rate in zip code 60952 has shown some volatility over the past decade. In 2013, the area boasted a high 88% owner-occupancy rate. However, this figure declined to 75% by 2018, before rebounding to 86% in 2022. This fluctuation coincides with changes in average home prices, which have generally trended upward. For instance, the average home price in 2012 was $67,342, rising steadily to reach $94,113 by 2022, representing a 39.8% increase over this period.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2012 to 2015 saw historically low interest rates, hovering around 0.1% to 0.13%. During this time, homeownership rates remained relatively high, likely due to the increased affordability of mortgages. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, we observed some fluctuations in homeownership rates, suggesting a potential correlation between higher borrowing costs and shifts in property ownership patterns.
The rental market in zip code 60952 has also experienced notable changes. The percentage of renters increased from 12% in 2013 to 25% in 2018, before decreasing to 14% in 2022. Average rent prices have shown some volatility, with the median rent peaking at $811 in 2013, dropping to $703 in 2016, and then rising again to $707 in 2022. These changes in rental patterns may be influenced by the area's population fluctuations, which saw a decline from 965 residents in 2010 to 811 in 2022.
In 2023 and 2024, the housing market in zip code 60952 continued to evolve. The average home price increased to $95,587 in 2023 and further rose to $101,402 in 2024, marking a significant 6.1% year-over-year increase. This growth occurred despite a substantial rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local demand or other favorable market conditions offsetting the impact of higher borrowing costs.
Looking ahead, predictive models suggest a continuation of the upward trend in average home prices for zip code 60952 over the next five years. Based on historical data and current market conditions, we can expect average home prices to potentially reach around $115,000 to $120,000 by 2029. Rent prices are also projected to increase moderately, potentially reaching an average of $850 to $900 per month in the same timeframe, assuming current economic conditions and local market dynamics persist.
In summary, zip code 60952 has demonstrated resilience in its housing market, with generally increasing home values despite population fluctuations. The area has maintained a high rate of homeownership, even in the face of rising interest rates. The rental market has shown adaptability, with rent prices remaining relatively stable despite changes in the renter population. As the community moves forward, it appears poised for continued growth in property values, with both the ownership and rental sectors likely to see moderate but steady increases in the coming years.
