The relationship between federal interest rates and homeownership rates in Mahomet is noteworthy. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates in Mahomet increased from 83% to 87%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. Even as interest rates began to rise sharply in 2022 (1.68%) and 2023 (5.02%), Mahomet's homeownership rate remained high at 88%, suggesting other factors may be influencing local homeownership trends.

The renter percentage in Mahomet has remained relatively stable, fluctuating between 11% and 14% from 2013 to 2022. Average rent prices have shown some variability over this period. In 2013, the average rent was $1,063, which decreased slightly to $995 in 2017 before rising again to $1,054 in 2022. This represents a modest overall decrease of 0.8% in average rent prices from 2013 to 2022. The stability in renter percentages, despite the population growth from 12,219 in 2013 to 13,348 in 2022, suggests that new housing development in Mahomet has largely kept pace with population growth.

Looking at the most recent data, the average home price in Mahomet continued to rise, reaching $306,328 in 2023 and $310,719 in 2024. This represents a 3.9% increase from 2022 to 2024. Concurrently, federal interest rates have continued to climb, reaching 5.33% in 2024. Despite these higher interest rates, Mahomet's housing market appears to remain robust, with continued price appreciation.

Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Mahomet will continue to rise, albeit at a potentially slower rate due to higher interest rates. Based on the historical data and current trends, we project that average home prices could reach approximately $340,000 to $360,000 by 2029. For average rent prices, we expect a moderate increase, potentially reaching $1,200 to $1,300 per month by 2029, assuming continued population growth and demand for rental properties.

In summary, Mahomet has experienced a significant increase in homeownership rates and average home prices over the past decade, with a particularly strong surge in home values since 2020. The rental market has remained relatively stable in terms of both occupancy rates and prices. Despite rising interest rates, the local housing market continues to show strength, suggesting that Mahomet remains an attractive location for homeowners and investors alike. The projected continued growth in both home prices and rents indicates a positive outlook for Mahomet's real estate market in the coming years.