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Manhattan, Illinois: Rising Home Values and High Ownership Rates Amid Population Growth
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
Manhattan, Illinois, is a thriving suburban community located in Will County. With a population of 11,360 as of 2022, this small city has experienced steady growth over the past decade. The city is characterized by a strong preference for homeownership, with consistently high owner-occupied housing rates and a trend of rising average home prices.
The homeownership rate in Manhattan has shown remarkable stability and growth over the years. In 2013, 89% of residents owned their homes, and this figure remained relatively steady until 2021, when it reached 90%. By 2022, the homeownership rate further increased to 91%, indicating a strong preference for owning rather than renting in the community. This trend aligns with the significant increase in average home prices, which rose from $223,266 in 2010 to $325,534 in 2022, representing a 45.8% increase over 12 years.
The relationship between federal interest rates and homeownership rates in Manhattan appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low between 2010 and 2015 (ranging from 0.10% to 0.18%), the city maintained high homeownership rates. Even as interest rates began to rise gradually from 2016 to 2019, Manhattan's homeownership rate remained robust, suggesting other local factors may also influence the strong propensity for homeownership in the area.
Renter percentages in Manhattan have remained relatively low, fluctuating between 9% and 16% from 2013 to 2022. Interestingly, average rent prices have shown a declining trend in recent years. In 2013, the average rent was $1,649, which decreased to $1,090 by 2022, representing a 33.9% reduction. This decline in rent prices, coupled with the city's growing population (from 8,930 in 2013 to 11,360 in 2022), suggests that the rental market in Manhattan may be becoming more competitive or that there might be an increase in affordable rental options to accommodate the growing population.
In 2023, the average home price in Manhattan reached $343,660, continuing the upward trend observed in previous years. This increase occurred despite the federal interest rate rising to 5.02% in 2023. Moving into 2024, the average home price has further climbed to $357,099, while the federal interest rate has slightly increased to 5.33%. These figures indicate that the local housing market remains strong, even in the face of higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Manhattan are likely to continue their upward trajectory over the next five years. Based on historical trends, we can expect average home prices to potentially reach around $400,000 by 2029. However, the rate of increase may slow down if interest rates remain high. As for rent prices, the recent downward trend may stabilize or potentially reverse slightly, with average rents possibly settling around $1,200 to $1,300 per month in the next five years, assuming the population continues to grow and demand for rentals increases.
In summary, Manhattan demonstrates a strong and growing preference for homeownership, with steadily increasing average home prices despite fluctuations in interest rates. The rental market, while smaller, shows interesting dynamics with decreasing rent prices amidst population growth. The city's housing market appears resilient, with continued growth in home values even in the face of rising interest rates in recent years.
