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Princeton, Illinois: A Decade of Housing Market Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Princeton, Illinois, a city in Bureau County with a population of 9,095 as of 2022, has experienced significant changes in its real estate market over the past decade. The city's homeownership rate has remained relatively stable at 70-75%, while average home prices and rent have shown an upward trend, particularly in recent years. This analysis examines the relationship between homeownership rates, average home prices, and other economic factors in Princeton.
The interplay between homeownership rates and average home prices in Princeton reveals interesting patterns. In 2013, the homeownership rate was 71% with an average home price of $94,832. As home prices increased to $103,502 in 2019, the homeownership rate rose to 75%, suggesting that rising home values did not significantly deter homeownership. However, by 2022, as average home prices reached $129,297, the homeownership rate slightly decreased to 74%, indicating a potential impact of higher prices on affordability.
Federal interest rates have influenced homeownership trends in Princeton. During periods of low interest rates (below 0.5%) from 2013-2016, homeownership rates remained stable at around 71%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates actually increased slightly to 74%, suggesting that local factors may have offset the impact of rising interest rates on homebuying decisions in Princeton.
Renter percentages and average rent prices in Princeton have shown an interesting relationship. In 2013, 29% of residents were renters, with an average rent of $588. As the renter percentage fluctuated between 25-31% over the years, average rent prices steadily increased. By 2021, with 27% of residents renting, the average rent had risen to $803, representing a 36.6% increase from 2013. This trend suggests that despite rising rents, the demand for rental properties in Princeton has remained relatively stable.
Recent data shows that the average home price in Princeton continued its upward trajectory, reaching $137,325 in 2023 and $145,849 in 2024. This represents a significant increase of 12.8% from 2022 to 2024. Simultaneously, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability and market dynamics in the city.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Princeton will continue to rise, potentially reaching around $170,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, the forecast suggests a continued increase, potentially reaching an average of around $900-$950 per month by 2029, assuming the trend of gradual increases continues.
In summary, Princeton's real estate market has demonstrated resilience and growth over the past decade. The city has maintained a strong homeownership base despite rising home prices, with only slight fluctuations in response to changing economic conditions. The rental market has seen steady increases in average rent, reflecting ongoing demand for rental properties. As Princeton moves forward, the interplay between housing affordability, interest rates, and local economic factors will likely continue to shape its real estate landscape.
