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Home Values and Ownership in Zip Code 62842: A Rural Illinois Community's Stable 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 62842, located in Jeffersonville, Illinois, has experienced notable fluctuations in its demographic and housing landscape over the past decade. This rural area has seen shifts in homeownership rates and rental prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 62842 has remained relatively high, though with some variations. In 2013, the area boasted an impressive 89% homeownership rate. This figure saw a slight decline to 80% by 2018 but rebounded to 84% in 2022. These changes coincided with fluctuations in average rent prices. The average rent increased from $633 in 2013 to $678 in 2022, peaking at $733 in 2021. This overall upward trend in rent prices may have influenced some residents to transition from renting to homeownership.
Federal interest rates have played a significant role in homeownership trends. The period from 2013 to 2022 was characterized by historically low interest rates, ranging from 0.11% to 1.68%. These low rates likely contributed to maintaining the high homeownership rates in the area by making mortgages more affordable. For instance, the slight dip in homeownership to 80% in 2018 coincided with a rise in interest rates to 1.83%, while the rebound to 86% ownership in 2020 occurred as rates dropped to 0.38%.
The rental market in zip code 62842 has shown inverse trends to homeownership. The percentage of renters increased from 11% in 2013 to 20% in 2018, before decreasing to 16% in 2022. This fluctuation appears to be influenced by changes in average rent prices and overall population trends. For example, the population decreased from 689 in 2010 to 518 in 2022, which may have affected the demand for rental properties and influenced rent prices.
In 2023 and 2024, we observe significant changes in the housing market for zip code 62842. The average home price in 2023 was $98,179, rising to $100,209 in 2024. This increase of approximately 2% occurs against the backdrop of elevated federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the area continues to see growth in home values, suggesting strong local demand or other positive economic factors influencing the housing market.
Looking ahead, we can project potential trends for the next five years based on historical data and current market conditions. If the current trajectory continues, we might expect average home prices in zip code 62842 to reach approximately $110,000 by 2029, assuming a consistent annual growth rate of about 2%. Average rent prices, which have shown more volatility, could potentially stabilize around $750-$800 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 62842 has maintained a strong homeownership base despite fluctuations in population and economic conditions. The area has seen gradual increases in both home values and rent prices, with recent data suggesting continued growth in the housing market. The interplay between federal interest rates, local economic factors, and demographic shifts will likely continue to shape the housing landscape in this Illinois village in the coming years.
