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Prophetstown, Illinois: Rising Home Values and Stable Ownership in a Volatile Housing Market
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
Prophetstown, a small city in Illinois, has experienced notable shifts in its housing market over the past decade. Located in Whiteside County, this charming community has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Prophetstown has remained relatively stable, with a slight upward trend from 80% in 2013 to 83% in 2022. This high rate of homeownership suggests a strong preference for property ownership among residents. Concurrently, average home prices have shown significant growth, particularly in recent years. In 2010, the average home price was $100,750, which increased to $128,231 by 2022, representing a 27.3% increase over this period.
The relationship between federal interest rates and homeownership rates in Prophetstown appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low between 2010 and 2016 (ranging from 0.1% to 0.4%), homeownership rates in Prophetstown increased from 80% in 2013 to 81% in 2016. However, the city's high baseline homeownership rate may have limited the impact of interest rate fluctuations on overall ownership trends.
Renter percentages in Prophetstown have shown a slight decrease, from 20% in 2013 to 17% in 2022. This trend coincides with fluctuations in average rent prices. The average rent peaked at $805 in 2013 and subsequently decreased to $757 in 2022, a 6% reduction. This decline in average rent prices, coupled with the decreasing renter percentage, suggests a shift towards homeownership in the city, possibly due to increased affordability of home purchases relative to renting.
In 2023 and 2024, Prophetstown's housing market continued its upward trajectory. The average home price reached $136,511 in 2023 and further increased to $140,592 in 2024, representing a 9.6% growth over two years. This growth occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, indicating strong local demand for housing.
Looking ahead, predictive models suggest a continued increase in average home prices for Prophetstown over the next five years. Based on current trends, average home prices could potentially reach around $160,000 by 2029. Average rent prices are expected to stabilize or show modest increases, potentially reaching approximately $800 per month in the same timeframe.
In summary, Prophetstown's housing market is characterized by high homeownership rates, steadily increasing average home prices, and relatively stable average rent prices. The city has demonstrated resilience in its housing market, maintaining strong homeownership rates even as home prices have risen. The recent surge in home prices, despite higher interest rates, suggests a robust local housing demand that may continue to drive market growth in the coming years.
