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New Douglas: Rising Home Values and Ownership Rates in a Small Illinois Community
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
New Douglas, located in Illinois, has experienced notable shifts in its housing market over the past decade. This small community has seen fluctuations in population, homeownership rates, and housing prices, reflecting broader economic trends and local dynamics.
The homeownership rate in New Douglas has shown a steady increase from 2013 to 2022. In 2013, 86% of residents owned their homes, and this figure rose consistently, reaching 94% by 2022. This trend coincided with changes in average home prices, which have been available since 2017. From 2017 to 2022, average home prices in New Douglas increased from $70,059 to $95,874, representing a significant 36.8% growth over five years.
The relationship between federal interest rates and homeownership rates in New Douglas aligns with well-established economic principles. As interest rates remained low from 2013 to 2020, ranging between 0.08% and 2.16%, homeownership rates continued to climb. This correlation suggests that the low-interest environment made mortgage financing more accessible, encouraging more residents to purchase homes.
Conversely, the percentage of renters in New Douglas decreased from 14% in 2013 to 6% in 2022. This decline in renters corresponds with fluctuations in average rent prices. Average rent peaked at $943 in 2018 before declining to $730 in 2022, a 22.6% decrease. The reduction in rental prices, coupled with the declining renter population, indicates a shift towards homeownership in the community.
In 2023 and 2024, New Douglas continued to see growth in average home prices. The average home price reached $96,757 in 2023 and further increased to $102,310 in 2024, representing a 5.7% year-over-year increase. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from previous years.
Looking ahead, predictive models suggest that average home prices in New Douglas may continue to rise over the next five years, potentially reaching around $120,000 by 2029. This projection is based on the historical growth rate and assumes relatively stable economic conditions. Average rent prices, which have shown more volatility, may stabilize or see modest increases, potentially reaching $800-$850 per month by 2029.
In summary, New Douglas has experienced a significant shift towards homeownership, with a corresponding decrease in renters. The community has seen substantial growth in average home prices, particularly since 2017. Despite recent increases in interest rates, the trend towards homeownership remains strong. These patterns reflect the changing dynamics of this small Illinois community and its housing market.
