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Orion, Illinois: Rising Home Values and Shifting Ownership Patterns in a Small 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
Orion, located in Illinois, is a small community with a rich history and a population of 2,113 as of 2022. Over the past decade, this charming village has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Orion has shown a slight downward trend over the years, moving from 86% in 2013 to 79% in 2022. This shift coincides with a steady increase in average home prices, which rose from $132,347 in 2013 to $188,005 in 2022, representing a 42% increase over this period. The 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 Orion. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 81-82%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, there was a noticeable decline in homeownership rates to 79%. 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 Orion has increased from 14% in 2013 to 21% in 2022, corresponding with a rise in average rent prices. In 2013, the average rent was $551, which climbed to $675 by 2022, marking a 22.5% increase. This upward trend in both renter percentages and average rent prices could be attributed to factors such as changing demographics, increased demand for rental properties, or the growing unaffordability of homeownership for some residents.
Looking at the most recent data, the average home price in Orion reached $193,040 in 2023 and further increased to $195,925 in 2024. This continued upward trajectory in home values occurs alongside a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and potentially influence future homeownership rates in the village.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Orion will continue to rise, potentially reaching around $220,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $750 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Orion has experienced a gradual shift towards a higher percentage of renters over the past decade, coinciding with substantial increases in both average home prices and average rent prices. The interplay between federal interest rates, homeownership rates, and property values has been evident, with rising interest rates potentially contributing to the slight decline in homeownership. As the village moves forward, the real estate market is expected to continue its upward trajectory in terms of both home values and rental costs, potentially shaping the community's demographic composition and housing landscape in the years to come.
