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Knoxville, Illinois: Steady Home Values and High Ownership Rates in a Small Urban Community
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
Knoxville, Illinois, is a small urban community with a rich history and a population that has remained relatively stable over the past decade. As of 2022, the city had 3,551 residents, reflecting a modest growth trend. Knoxville has maintained a strong preference for homeownership, with owner-occupied housing consistently above 75% throughout the observed period. Average home prices have shown a general upward trajectory, while average rent prices have experienced fluctuations.
The homeownership rate in Knoxville has demonstrated resilience, ranging from 76% to 85% between 2013 and 2022. This trend coincides with a steady increase in average home prices, which rose from $82,850 in 2010 to $138,305 in 2022, representing a 67% increase over 12 years. The city saw its highest homeownership rate of 85% in 2021, corresponding with an average home price of $130,858. This suggests that despite rising home values, Knoxville residents have maintained a strong inclination towards homeownership.
Federal interest rates have played a significant role in homeownership trends. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the high homeownership rates observed in Knoxville. As interest rates began to rise in 2017, reaching 1.83% in 2018, there was a slight dip in homeownership to 81%. However, the city's homeownership rate rebounded to 83% by 2020, even as interest rates dropped to 0.38% in response to economic conditions.
Renter percentages in Knoxville have inversely mirrored homeownership rates, ranging from 15% to 24% between 2013 and 2022. Average rent prices have shown some volatility, with a notable decrease from $683 in 2013 to $610 in 2015, followed by a general upward trend reaching $767 in 2022. The lowest renter percentage of 15% in 2021 coincided with a significant jump in average rent to $757, suggesting that higher rents may have encouraged some renters to transition to homeownership.
In 2023, average home prices in Knoxville experienced a slight decrease to $130,618, down from $138,305 in 2022. This shift occurred as federal interest rates rose sharply to 5.02% in 2023. Moving into 2024, average home prices have rebounded to $136,891, despite a further increase in interest rates to 5.33%. This resilience in home values, even in the face of higher borrowing costs, indicates strong underlying demand in the Knoxville housing market.
Looking ahead, predictive models suggest that average home prices in Knoxville may continue to rise over the next five years, potentially reaching around $150,000 by 2029, assuming economic conditions remain stable. Average rent prices are also projected to increase, possibly surpassing $800 per month within the same timeframe. These forecasts are based on historical trends and current market dynamics.
In summary, Knoxville, Illinois, has maintained a robust homeownership culture despite rising home prices. The city has demonstrated resilience in its housing market, with homeownership rates remaining high even as average home prices and interest rates have fluctuated. The rental market, while smaller, has shown consistent demand with gradually increasing average rents. The interplay between homeownership rates, home prices, and federal interest rates highlights the complex dynamics of Knoxville's housing market, which appears poised for continued growth in both the ownership and rental sectors.
