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Mason City, Illinois: Steady Homeownership Growth Amidst Fluctuating 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
Mason City, Illinois, is a small urban community located in Mason County. With a population of 2,971 in 2022 and a land area of 1.01 square miles, it maintains a tight-knit community feel. The city has experienced interesting shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local dynamics.
Homeownership in Mason City has shown a steady increase from 2013 to 2022. The percentage of owner-occupied housing units rose from 73% in 2013 to 80% in 2022, indicating a growing preference for homeownership among residents. This trend coincided with fluctuations in average home prices. In 2016, the average home price was $102,163, which decreased to $88,683 in 2018 before rebounding to $107,562 in 2022. The initial decline and subsequent recovery in home prices may have contributed to the increased homeownership rate, as lower prices potentially made homeownership more accessible to residents.
The relationship between federal interest rates and homeownership rates in Mason City appears to follow expected patterns. As interest rates remained historically low from 2013 to 2021, ranging from 0.08% to 1.83%, homeownership rates increased. This correlation suggests that the low-interest environment likely made mortgages more affordable, encouraging more residents to purchase homes. The significant jump in homeownership from 76% in 2018 to 80% in 2022 coincided with interest rates dropping from 1.83% in 2018 to 0.08% in 2021, before rising to 1.68% in 2022.
Renter percentages in Mason City have shown a slight decline, moving from 22% in 2013 to 20% in 2022. This decrease aligns with the rise in homeownership rates. Average rent prices have fluctuated over the years, with a notable drop from $655 in 2015 to $567 in 2017, followed by an increase to $644 in 2021, and then a slight decrease to $609 in 2022. These fluctuations in rent prices, coupled with the city's relatively stable population, suggest that local economic factors and housing supply dynamics play a significant role in the rental market.
In 2023 and 2024, Mason City experienced some changes in its housing market. The average home price decreased to $100,345 in 2023 and further to $99,292 in 2024. This decline occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make borrowing more expensive, which could explain the slight downward pressure on home prices.
Looking ahead, based on recent trends and current economic conditions, we can forecast potential 5-year trends for Mason City's housing market. Average home prices may stabilize or see modest growth, potentially reaching around $110,000 to $115,000 by 2029. Rent prices could continue their gradual upward trend, possibly increasing to an average of $650 to $700 per month. However, these projections are subject to various factors, including local economic developments, population changes, and broader economic trends.
In summary, Mason City has experienced a significant increase in homeownership rates over the past decade, largely supported by a period of low interest rates. The housing market has shown resilience, with home prices recovering from earlier declines. The rental market, while smaller, has remained relatively stable. Recent increases in interest rates and slight declines in home prices suggest a potential period of adjustment in the housing market. Moving forward, Mason City's real estate landscape is likely to be shaped by the interplay of local economic factors, demographic shifts, and broader economic trends.
