Loading Content...
Mount Vernon's Real Estate Evolution: Steady Homeownership Amid Price Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Mount Vernon, Illinois: A Decade of Housing Market Shifts Mount Vernon, a city in Illinois with a population of 19,868 in 2022 and an area of 14.66 square miles, has experienced significant changes in its housing market over the past decade. The city has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
Homeownership and Home Prices The homeownership rate in Mount Vernon has shown a slight overall decline from 2013 to 2022. In 2013, 63% of residents owned their homes, reaching a peak of 65% in 2017 and 2019, before decreasing to 62% in 2022. This trend coincides with interesting shifts in average home prices. The average home price in 2013 was $108,252, which rose dramatically to $142,980 in 2015. However, it then experienced a sharp decline, reaching $82,135 in 2018 before gradually increasing to $96,234 in 2022.
Impact of Federal Interest Rates Federal interest rates have played a role in shaping homeownership trends. The period from 2013 to 2015 saw historically low interest rates, ranging from 0.11% to 0.13%, which likely contributed to the increase in homeownership during this time. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, we see a corresponding decline in homeownership rates.
Rental Market Trends The rental market in Mount Vernon has shown an inverse relationship to homeownership trends. The percentage of renters increased from 37% in 2013 to 38% in 2022, with fluctuations in between. Average rent prices have steadily increased over this period, rising from $685 in 2013 to $822 in 2022, representing a 20% increase. This rise in rent prices, coupled with the overall population decline from 20,837 in 2013 to 19,868 in 2022, suggests increasing demand for rental properties despite a shrinking population.
Recent Market Developments In 2023 and 2024, the housing market in Mount Vernon continued to evolve. The average home price rose to $99,713 in 2023 and further increased to $104,307 in 2024, indicating a recovering housing market. However, this recovery is occurring in a high interest rate environment, with rates at 5.02% in 2023 and 5.33% in 2024, which may impact affordability for potential homebuyers.
Future Projections Predictive models suggest that average home prices in Mount Vernon are likely to continue their upward trajectory over the next five years, potentially reaching around $115,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $900 per month within the same timeframe. These projections are based on current trends and economic conditions.
Summary Mount Vernon's housing market has experienced significant fluctuations over the past decade. The city has seen a slight shift towards renting, with increasing average rent prices despite a declining population. Average home prices, after a period of volatility, are showing signs of steady growth. The interplay between federal interest rates, homeownership rates, and housing prices continues to shape the local real estate landscape, with recent high interest rates potentially influencing future homeownership trends.
