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Paris, Illinois: Home Values and Ownership in a Charming Small Town
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
Paris, Illinois, a city with a rich history dating back to the early 19th century, has experienced notable shifts in its housing market and population dynamics over the past decade. Located in Edgar County, this charming Midwest town has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Paris has remained relatively stable, hovering around 70% throughout the 2010s. However, there have been subtle shifts worth noting. In 2013, the homeownership rate stood at 70%, gradually decreasing to 67% by 2016. This trend coincided with a steady increase in average home prices, which rose from $69,961 in 2013 to $76,680 in 2016, representing a 9.6% increase over three years. This inverse relationship suggests that rising home prices may have made homeownership slightly less accessible for some residents during this period.
Federal interest rates have played a significant role in shaping homeownership trends in Paris. The period from 2013 to 2015 saw historically low interest rates, ranging from 0.11% to 0.13%. These low rates likely contributed to the relatively high homeownership rates during this time, as they made mortgages more affordable. However, as interest rates began to rise in 2016 (0.4%) and continued to increase in subsequent years, we observed a slight decline in homeownership rates, dropping to 67% by 2021.
Renter percentages in Paris have shown a corresponding inverse relationship to homeownership rates. In 2013, the renter-occupied housing rate was 30%, which increased to 33% by 2016 as homeownership rates declined. Average rent prices also experienced fluctuations during this period. In 2013, the average rent was $565, rising to $683 by 2017, a 20.9% increase. However, rent prices then saw a decrease, dropping to $593 by 2022. This fluctuation in rent prices, coupled with changes in the renter population percentage, suggests a dynamic rental market responding to various economic factors and population changes.
Looking at the most recent data, the average home price in Paris for 2023 was $85,556, showing a slight increase from the previous year. In 2024, the average home price has stabilized at $85,521. This relative stability in home prices comes despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may impact future homebuying activity in the city.
Applying predictive models to forecast 5-year trends, we anticipate a moderate increase in average home prices in Paris. Based on historical data and current market conditions, average home prices could potentially reach around $90,000 to $95,000 by 2029. For rent prices, the forecast suggests a gradual upward trend, potentially reaching an average of $650 to $700 per month within the next five years. However, these projections are subject to various economic factors and local market conditions.
In summary, Paris, Illinois has demonstrated resilience in its housing market despite population decline and economic fluctuations. The city has maintained a relatively high homeownership rate, even as average home prices have generally trended upward. The rental market has shown more volatility, with fluctuating rent prices and a slight increase in the percentage of renters. As Paris moves forward, the interplay between interest rates, housing prices, and demographic shifts will continue to shape its real estate landscape.
