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Pleasant Hill: Fluctuating Home Values and Ownership in a Small Illinois 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
Pleasant Hill, located in Illinois, is a small community that has experienced notable demographic and housing market changes over the past decade. The city has seen fluctuations in homeownership rates and rental prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Pleasant Hill has shown some variability over the years. In 2013, the homeownership rate stood at 79%, which increased to 83% by 2015. However, there was a decline to 76% in 2016, followed by a slight recovery to 78% in 2020 and 2021. The most recent data from 2022 shows a homeownership rate of 75%. This trend suggests a complex relationship between homeownership and market factors.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2015, when homeownership rates increased from 79% to 83%, interest rates were historically low, ranging from 0.11% to 0.13%. This likely encouraged home buying due to more affordable financing options. The slight drop in homeownership to 76% in 2016 coincided with a small increase in interest rates to 0.40%. As interest rates remained relatively low through 2020 and 2021, homeownership rates stabilized around 78%.
The rental market in Pleasant Hill has shown an inverse relationship to homeownership trends. The percentage of renters increased from 17% in 2015 to 24% in 2016, coinciding with the drop in homeownership. Average rent prices have generally trended upward, rising from $421 in 2013 to $666 in 2022, representing a 58% increase over this period. This significant rise in rent prices may have influenced some residents to consider homeownership as a more economical long-term option.
In 2023 and 2024, the average home price in Pleasant Hill reached $81,203 and $81,920 respectively. This represents a modest year-over-year increase of about 0.9%. Concurrently, federal interest rates have risen substantially, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying decisions and could potentially slow down the growth in home prices.
Looking ahead to the next five years, predictive models suggest that average home prices in Pleasant Hill may continue to rise, but at a more moderate pace given the current higher interest rate environment. Average rent prices are also expected to increase, potentially at a rate slightly above inflation, as demand for rental properties may grow if higher interest rates deter some potential homebuyers.
In summary, Pleasant Hill has experienced a dynamic housing market over the past decade, with fluctuations in homeownership rates and a steady increase in rental prices. The relationship between federal interest rates and homeownership trends is evident, with lower rates generally corresponding to higher ownership rates. The recent rise in interest rates and the modest growth in home prices suggest a potential shift in the housing market dynamics for the coming years.
