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Oreana, Illinois: Rising Home Values and High Ownership Rates Amidst Interest Rate Fluctuations
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
Oreana, located in Illinois, is a small community that has experienced significant changes in its housing market over the past decade. With a population of 1,125 in 2022 and covering an area of just 0.47 square miles, this tight-knit village has seen notable shifts in homeownership rates and property values.
Homeownership in Oreana has shown a strong upward trend, particularly in recent years. In 2013, the homeownership rate was 86%, which increased to 90% by 2022. This rise in homeownership coincided with fluctuations in average home prices. In 2014, the average home price was $115,854, and by 2022, it had risen to $145,574, representing a 25.7% increase over eight years.
The relationship between federal interest rates and homeownership rates in Oreana appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low from 2013 to 2021 (ranging from 0.08% to 1.68%), homeownership rates in the village increased from 86% to 94%. This suggests that the favorable financing conditions may have contributed to the rise in homeownership.
Conversely, the renter population in Oreana has decreased over time. In 2013, renters made up 14% of the population, which dropped to 10% by 2022. Despite this decline, average rent prices have shown some volatility. In 2013, the average rent was $1,153, which decreased to $778 in 2022, a 32.5% reduction. This decrease in rent prices, coupled with the declining renter population, suggests a shift towards homeownership in the community.
As of 2024, the average home price in Oreana has reached $161,613, showing a continued upward trend from previous years. This represents an 11% increase from 2022. The federal interest rate for 2024 stands at 5.33%, which is significantly higher than the rates seen in the previous decade. Despite this increase in interest rates, the housing market in Oreana appears to remain robust.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Oreana may continue to rise over the next five years, potentially reaching around $180,000 by 2029. However, the rate of increase might slow down if interest rates remain high. As for rent prices, given the historical volatility, it's challenging to make a precise prediction, but they may stabilize or show modest increases, possibly reaching an average of $850-$900 per month by 2029.
In summary, Oreana has experienced a significant increase in homeownership rates over the past decade, accompanied by rising average home prices. The renter population has decreased, along with a general decline in average rent prices. Despite recent increases in interest rates, the housing market in Oreana continues to show strength, with homeownership remaining the dominant trend in this small Illinois community.
