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North Pekin: Stable Homeownership Amid Rising 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
North Pekin, located in Illinois, is a small community with a population of 1,398 as of 2022. The village has experienced fluctuations in homeownership rates and housing prices over the past decade. From 2013 to 2022, the average homeownership rate remained relatively stable, hovering around 87-89%. Meanwhile, average home prices showed a gradual upward trend, with some volatility in between.
The relationship between homeownership rates and average home prices in North Pekin has been relatively stable. In 2013, the homeownership rate was 87% with an average home price of $76,250. Despite some fluctuations, by 2022, the homeownership rate remained at 87% while the average home price increased to $94,188. This suggests that rising home prices did not significantly impact homeownership rates in the village.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (0.11% to 0.4%), homeownership rates in North Pekin remained steady at 85-87%. As interest rates began to rise from 2017 onwards, there was a slight increase in homeownership, reaching 90% in 2017 before stabilizing around 87-89% in subsequent years. This suggests that while lower interest rates generally encourage homeownership, other local factors may have influenced the village's housing market dynamics.
Renter percentages and average rent prices in North Pekin have shown some correlation. In 2013, the renter-occupied rate was 13% with an average rent of $904. As the renter percentage fluctuated between 10-15% from 2013 to 2022, average rent prices generally increased. By 2022, the renter-occupied rate was 12% with an average rent of $1,128, representing a 24.8% increase in rent over this period. The population decline from 1,554 in 2013 to 1,398 in 2022 may have contributed to the overall housing market dynamics, including rent prices.
In 2023 and 2024, North Pekin experienced a continued rise in average home prices. The average home price reached $99,983 in 2023 and further increased to $106,913 in 2024, representing a 13.5% increase over two years. This occurred despite the Federal interest rates rising significantly to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to slow home price growth.
Looking ahead, predictive models suggest that average home prices in North Pekin 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 outpacing wage growth in the area. However, the exact trajectory will depend on various factors including local economic conditions, population changes, and broader market trends.
In summary, North Pekin has maintained a relatively stable homeownership rate despite rising home prices. The rental market has seen gradual increases in average rent, with some correlation to changes in the renter population. Recent years have shown resilience in home price growth even in the face of rising interest rates, suggesting strong local demand for housing in this Illinois village.
