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Newton, Illinois: Rising Home Values and Resilient Ownership in a Small Midwestern City
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
Newton, Illinois, is a small city with a rich history dating back to the early 19th century. Known for its picturesque town square and the Jasper County Courthouse, Newton has experienced fluctuating trends in homeownership and housing prices over the past decade. The city has seen a general decline in homeownership rates, while average home prices have steadily increased. Average rent prices have shown volatility, with significant fluctuations from year to year.
The homeownership rate in Newton has experienced a downward trend, decreasing from 77% in 2014 to 73% in 2022. During this same period, average home prices have shown a consistent upward trajectory. In 2014, the average home price was $81,798, which increased to $125,740 by 2022, representing a substantial 53.7% growth over eight years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Newton. From 2014 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates fluctuated but remained generally stable. However, as interest rates began to rise sharply in 2022 (1.68%) and 2023 (5.02%), homeownership rates stabilized at 73%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Newton has shown an overall increase, rising from 23% in 2014 to 27% in 2022. Average rent prices have exhibited significant volatility during this period. In 2014, the average rent was $567, which increased dramatically to $967 in 2018, representing a 70.5% jump. However, rent prices then decreased to $660 in 2019 before gradually rising to $711 in 2022. These fluctuations in rent prices, coupled with the increasing renter population, suggest a complex rental market influenced by various factors including housing availability and local economic conditions.
In 2023, the average home price in Newton reached $132,161, continuing the upward trend observed in previous years. This represents a 5.1% increase from 2022. The federal interest rate in 2023 was 5.02%, significantly higher than in previous years. Moving into 2024, the average home price has further increased to $134,585, while the federal interest rate has risen to 5.33%. These figures indicate a continued appreciation in home values despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Newton are likely to continue their upward trajectory over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are expected to stabilize and potentially increase moderately, reflecting the growing renter population and overall housing market trends.
In summary, Newton has experienced a gradual shift towards a higher percentage of renters, coupled with consistently rising average home prices. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics of the local real estate market. As the city moves forward, these trends will likely continue to shape the housing landscape, potentially impacting affordability and accessibility for both homeowners and renters in Newton.
