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Hudson, Illinois: Resilient Homeownership Amid Rising Home Values
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
Hudson, located in Illinois, is a small community with a population that has fluctuated between 1,944 and 2,297 residents over the past decade. This charming village has maintained an exceptionally high rate of homeownership, consistently above 90%, while experiencing significant changes in average home prices and rent rates. The trends in ownership percentages, average home prices, and average rent prices have shown notable fluctuations, reflecting the dynamic nature of Hudson's housing market.
The relationship between homeownership rates and average home prices in Hudson presents an interesting trend. Despite the substantial increase in average home prices from $183,349 in 2010 to $251,011 in 2022, the percentage of owner-occupied homes remained remarkably stable, ranging from 93% to 97%. This suggests a strong preference for homeownership among residents, even as property values appreciated. The peak of homeownership was observed in 2016 at 97%, coinciding with an average home price of $208,696. Interestingly, the slight decrease in homeownership to 94% by 2022 occurred as average home prices reached their highest point in the dataset.
Federal interest rates have played a role in shaping homeownership trends in Hudson. The period from 2010 to 2015 saw historically low interest rates, ranging from 0.09% to 0.18%. This coincided with a steady homeownership rate of 93% from 2013 to 2015. As interest rates began to rise gradually from 2016 onwards, reaching 1.68% in 2022, the village experienced a slight fluctuation in homeownership rates, peaking at 97% in 2016 before settling at 94% in 2022. This suggests that while low interest rates may have supported high homeownership rates, other factors specific to Hudson have helped maintain strong ownership levels even as rates increased.
The rental market in Hudson has shown significant volatility in both renter percentages and average rent prices. The percentage of renter-occupied homes remained low, ranging from 3% to 7% between 2013 and 2022. Average rent prices, however, experienced dramatic swings. From 2013 to 2017, average rent increased from $550 to $1,000, a substantial 82% rise. This peak in 2017 coincided with the lowest renter percentage of 3%. Subsequently, average rent prices declined, reaching $432 in 2022, while the renter percentage increased slightly to 6%. These fluctuations might be attributed to the limited rental inventory in a predominantly owner-occupied market, where small changes in available units can have outsized effects on average rents.
Looking at the most recent data, average home prices in Hudson continued their upward trajectory, reaching $265,938 in 2023 and further increasing to $279,404 in 2024. This represents a significant 11.3% increase from 2022 to 2024. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade. Despite these high interest rates, the continued appreciation in home values suggests ongoing demand for housing in Hudson.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in Hudson to continue their upward trajectory, potentially reaching around $320,000 by 2029. This projection is based on the historical growth rate and assumes continued demand for housing in the area. For average rent prices, the forecast suggests a potential stabilization and gradual increase, possibly reaching $600-$650 per month by 2029, assuming the rental market finds a balance between supply and demand.
In summary, Hudson demonstrates a robust preference for homeownership, maintaining high owner-occupancy rates despite significant increases in average home prices and fluctuating interest rates. The rental market, while small, has shown considerable volatility in both occupancy rates and prices. The recent sharp increases in both home prices and interest rates highlight the resilience of Hudson's housing market. As we look to the future, the community appears poised for continued growth in property values, with potential stabilization in the rental market.
