Average home prices in Bloomington have demonstrated a steady upward trend in recent years. In 2022, the average home price reached $118,413, representing a significant investment opportunity for residents. This increase in home values aligns with the high homeownership rates observed in the community.

The relationship between federal interest rates and homeownership rates in Bloomington is noteworthy. From 2013 to 2016, when interest rates were relatively low (ranging from 0.11% to 0.40%), homeownership rates increased from 86% to 97%. This trend supports the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.

Renter percentages in Bloomington have generally remained low, reflecting the community's preference for homeownership. The renter-occupied rate was 14% in 2013, decreased to 3% in 2016, rose to 21% in 2021, and then dropped to 10% in 2022. Average rent prices have shown considerable volatility, ranging from $349 in 2019 to $936 in 2021, with the 2022 average rent at $690, indicating a slight moderation in rental costs.

In 2023 and 2024, Bloomington continued to see growth in average home prices. The average home price increased to $122,144 in 2023 and further rose to $122,749 in 2024, representing a 3.66% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.

Based on observed trends, it is forecasted that average home prices in Bloomington are likely to continue their upward trajectory over the next five years. Assuming a similar growth rate, average home prices might reach approximately $135,000 by 2029. Rent prices, given their historical volatility, are more challenging to predict but may stabilize around $750-$800 per month if recent trends persist.

In conclusion, Bloomington demonstrates a strong preference for homeownership, with consistently high owner-occupied rates despite some fluctuations. Average home prices have shown steady growth, reflecting the community's desirability. While rental rates and prices have been more variable, they remain a smaller portion of the housing market in this CDP. The recent increases in federal interest rates may influence future homeownership trends, but the community's historical preference for owning homes suggests that Bloomington will likely maintain its character as a predominantly owner-occupied area.