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Home Values and Ownership in Zip Code 61272: A Decade of Housing Trends in New Boston, Illinois
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
New Boston, located in zip code 61272 in Illinois, has experienced notable changes in its housing market over the past decade. This small city, with a population of 1,335 in 2022, has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics.
The homeownership rate in New Boston has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate was 82%, and by 2022, it stood at 81%. During this period, the highest homeownership rate was recorded in 2019 at 84%, while the lowest was 78% in 2021. Despite these minor fluctuations, the overall trend suggests a strong preference for homeownership in this community.
Average home prices in New Boston have shown some volatility in recent years. In 2021, the average home price was $132,278, which decreased to $128,174 in 2022, representing a 3.1% decline. This trend aligns with the slight decrease in homeownership rates during the same period, from 81% in 2020 to 78% in 2021, before returning to 81% in 2022.
The relationship between federal interest rates and homeownership rates in New Boston is less straightforward. Despite historically low interest rates from 2020 to 2021 (0.38% and 0.08% respectively), the homeownership rate actually decreased from 81% to 78% during this period. This suggests that other local factors may have a more significant influence on homeownership decisions in this community than national interest rates.
Renter percentages in New Boston have remained relatively low, ranging from 16% to 22% between 2013 and 2022. The average rent prices have shown considerable fluctuation during this period. In 2013, the average rent was $639, which decreased to $459 in 2016, a 28% drop. However, rent prices began to rise again, reaching $585 in 2020 and 2022, with a brief dip to $502 in 2021. These fluctuations in rent prices do not show a clear correlation with the percentage of renters, which has remained relatively stable.
Looking at the most recent data, the average home price in New Boston increased slightly to $128,346 in 2023, a 0.13% rise from 2022. However, in 2024, the average home price decreased to $125,117, a 2.52% decline. This recent downward trend in home prices coincides with a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the cooling of the housing market in New Boston.
Applying predictive models to forecast 5-year trends, we can expect average home prices in New Boston to stabilize and potentially show modest growth as the market adjusts to higher interest rates. Average rent prices are likely to continue their upward trajectory, albeit at a moderate pace, as demand for rental properties may increase if homeownership becomes less affordable due to higher mortgage rates.
In summary, New Boston's housing market has demonstrated resilience with relatively stable homeownership rates despite fluctuations in average home prices and rent. The recent increase in interest rates appears to be having a cooling effect on home prices, while rent prices have shown a general upward trend. Moving forward, the interplay between interest rates, local economic conditions, and housing supply will be crucial in shaping the future of New Boston's housing market.
