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Home Values and Ownership in Zip Code 61114: A Decade of Resilience and Growth
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 61114, located in Rockford, Illinois, has experienced notable shifts in homeownership, average home prices, and average rent prices over the past decade. This area has maintained a predominantly owner-occupied housing market, with a slight decline in homeownership rates accompanied by steady increases in average home and rent prices. The homeownership rate in zip code 61114 has shown a gradual decline from 75% in 2013 to 72% in 2022. During this same period, average home prices have demonstrated a significant upward trend. In 2013, the average home price was $126,647, which increased to $209,477 by 2022, representing a 65.4% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in zip code 61114. 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 at around 73-75%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a slight decline in homeownership rates to 72%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 61114 has seen a modest increase, from 24% in 2013 to 28% in 2022. Concurrently, average rent prices have risen from $952 in 2013 to $1,037 in 2022, an increase of 8.9%. This growth in both renter percentage and average rent prices suggests a growing demand for rental properties in the area. The population of the zip code has remained relatively stable during this period, fluctuating between 14,654 and 15,323 residents, indicating that changes in rental demand are likely driven by shifts in housing preferences or affordability rather than significant population growth.
Looking at the most recent data, average home prices in zip code 61114 continued to rise, reaching $220,972 in 2023 and $234,953 in 2024. This represents a 12.2% increase from 2022 to 2024. Interestingly, federal interest rates also saw a significant jump, rising from 1.68% in 2022 to 5.02% in 2023, and further increasing to 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 61114 will continue to rise, potentially reaching around $280,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the recent acceleration in price growth. For average rent prices, we expect a more moderate increase, potentially reaching approximately $1,200 per month by 2029, assuming the current growth rate continues.
In summary, zip code 61114 has experienced a gradual shift towards a slightly higher percentage of renters, coupled with substantial increases in both average home prices and average rent prices. The inverse relationship between homeownership rates and property values, influenced by fluctuating interest rates, highlights the changing dynamics of the local housing market. As property values continue to rise, it will be crucial to monitor how these trends impact housing affordability and community demographics in the coming years.
