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Oakland, Illinois: Rising Home Values Amid Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Oakland, Illinois, a small community, has experienced notable changes in homeownership and housing prices over the past decade. From 2013 to 2022, the city witnessed a gradual decrease in homeownership rates, coupled with an overall increase in average home prices and rent prices. These trends reflect broader economic and demographic shifts within the community.
The homeownership rate in Oakland declined from 85% in 2013 to 76% in 2022. Concurrently, average home prices showed a steady upward trend, increasing from $76,505 in 2013 to $108,329 in 2022, representing a substantial 41.6% growth over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Oakland. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 77-83%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates stabilized at 76%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in Oakland increased from 15% in 2013 to 24% in 2022. Interestingly, average rent prices fluctuated during this period. In 2013, the average rent was $681, which decreased to $464 by 2021 before rising again to $582 in 2022. This fluctuation in rent prices, despite the increasing renter population, could be attributed to various factors such as local economic conditions, housing supply changes, or shifts in the types of rental properties available.
In 2023 and 2024, Oakland experienced continued growth in average home prices. The average home price reached $109,433 in 2023 and further increased to $113,159 in 2024. This represents a 3.4% increase from 2022 to 2023 and another 3.4% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics.
Looking ahead, based on the trends observed, it is projected that average home prices in Oakland will continue to rise over the next five years, potentially reaching around $130,000 by 2029. Average rent prices, which have shown more volatility, may stabilize and gradually increase, potentially reaching $650-$700 by 2029. These projections assume continued economic stability and moderate population growth in the area.
In summary, Oakland has experienced a gradual shift towards a higher proportion of renters, coinciding with rising average home prices. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with higher interest rates potentially contributing to the stabilization of homeownership rates. The city's housing market has shown resilience and growth, with continued increases in average home prices even in the face of rising interest rates in recent years.
