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Homeownership Decline and Rising Values: Zip Code 61341's Housing Market Transformation in Marseilles, 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
Zip code 61341, located in Marseilles, Illinois, has experienced notable shifts in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 61341 has shown a gradual decline from 2013 to 2022. In 2013, the area boasted an 82% homeownership rate, which steadily decreased to 74% by 2022. This 8 percentage point drop coincided with significant changes in average home prices. The average home price in 2013 was $113,224, and it rose to $180,267 by 2022, representing a substantial 59.2% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. 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, only declining slightly from 82% to 76%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a continued downward trend in homeownership, reaching 73% by 2020. This pattern aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 61341 have shown a corresponding increase as homeownership rates declined. The proportion of renters rose from 18% in 2013 to 26% in 2022. Interestingly, average rent prices have also experienced an upward trend during this period. In 2013, the average rent was $954, which increased to $970 by 2022, representing a modest 1.7% rise. However, it's worth noting that rent prices peaked at $1,052 in 2021 before slightly decreasing. The population of the area has decreased from 7,941 in 2013 to 7,260 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, the average home price in zip code 61341 reached $185,027 in 2023 and further increased to $194,212 in 2024. This represents a significant 7.7% year-over-year increase from 2022 to 2023, followed by a 5% increase from 2023 to 2024. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 61341 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, average home prices could reach approximately $230,000 to $250,000, assuming a moderate annual growth rate of 3-5%. For average rent prices, we expect a continued upward trend, potentially reaching $1,100 to $1,200 per month by 2029, based on historical patterns and local economic factors.
In summary, zip code 61341 has experienced a gradual shift towards a higher proportion of renters, coupled with rising home prices and modest increases in average rent. The interplay between federal interest rates, local economic conditions, and housing affordability has significantly influenced these trends. As we move forward, the area is likely to see continued growth in both home values and rental prices, potentially further impacting the balance between homeowners and renters in this Illinois community.
