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Mendon, Illinois: A Decade of Rising Home Values and Ownership Rates
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
Mendon, located in Illinois, has experienced notable shifts in its housing landscape over the past decade. This small community has seen significant changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The ownership percentage in Mendon has shown a general upward trend, coinciding with an increase in average home prices. In 2013, the homeownership rate was 69%, and it steadily rose to reach 84% by 2022. During this same period, average home prices increased from $109,924 in 2013 to $161,237 in 2022, representing a substantial 46.7% increase. This correlation suggests that as property values appreciated, more residents were motivated or able to purchase homes, possibly viewing them as sound investments.
Federal interest rates appear to have influenced homeownership rates in Mendon. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership increased from 69% to 83%. This aligns with the well-established trend that lower interest rates generally encourage homeownership due to more affordable financing options. However, even as interest rates began to rise from 2017 onwards, homeownership in Mendon remained high, suggesting other local factors may have supported this trend.
The rental market in Mendon has shown an inverse relationship to homeownership trends. As the percentage of renters decreased from 31% in 2013 to 16% in 2022, average rent prices increased significantly. In 2013, the average rent was $487, which rose to $836 by 2022, a 71.7% increase. This substantial rise in rent prices, despite a decreasing renter population, could indicate a shortage of rental properties or an increase in the quality of available rentals.
In 2023 and 2024, Mendon continued to see growth in average home prices. The average home price reached $169,706 in 2023 and further increased to $171,611 in 2024. This represents a 6.5% increase from 2022 to 2024. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in Mendon may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, possibly at a more moderate pace as the market adjusts to changes in demand and supply. These projections assume continued economic stability and no major disruptions to the local housing market.
In summary, Mendon has experienced a significant increase in homeownership rates and average home prices over the past decade, while simultaneously seeing a decrease in the renter population and a sharp rise in average rent prices. The interplay between these factors, along with the influence of federal interest rates, has shaped a dynamic housing market in this Illinois community. As the village moves forward, these trends will likely continue to evolve, influenced by both local conditions and broader economic factors.
