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Rising Home Ownership in Zip Code 62242: Rural Illinois Village Sees Steady Growth
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
Zip code 62242, located in Evansville, Illinois, presents an intriguing case study of homeownership and rental trends in a small Midwestern community. Over the past decade, this area has maintained a consistently high rate of homeownership, while experiencing fluctuations in average rent prices and a recent uptick in average home values.
The homeownership rate in zip code 62242 has remained remarkably stable, with a slight increase from 84% in 2013 to 87% in 2022. This high rate of homeownership suggests a strong preference for property ownership among residents in this area. Interestingly, while homeownership rates have remained relatively constant, the average home prices have shown a significant increase in recent years. As of 2024, the average home price in this zip code stands at $125,042, indicating a growing real estate market despite the stable ownership rates.
The relationship between federal interest rates and homeownership rates in this zip code appears to diverge from typical trends. While lower interest rates generally encourage homeownership due to more affordable financing options, the homeownership rate in 62242 remained high even as interest rates fluctuated. For instance, when interest rates dropped to near-zero levels between 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate held steady at 88%. This suggests that factors other than interest rates, such as local economic conditions or community preferences, may play a more significant role in driving homeownership in this area.
Renter percentages in zip code 62242 have shown a slight decrease over time, from 16% in 2013 to 13% in 2022. This decline in renters corresponds with an overall decrease in average rent prices. The average rent peaked at $823 in 2014 and has since declined to $596 in 2022, representing a 27.6% decrease over eight years. This downward trend in rent prices, coupled with a relatively stable population (1,658 in 2022), suggests a potential oversupply of rental properties or a shift in local housing preferences towards homeownership.
Looking at the most recent data, the average home price in zip code 62242 for 2023 and 2024 is $125,042. This represents a significant increase from previous years, indicating a potential shift in the local real estate market. Concurrently, federal interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically discourage home buying, the local market appears to be experiencing appreciation in home values.
Applying predictive models to forecast 5-year trends, we anticipate a continued modest increase in average home prices for zip code 62242. This projection is based on the recent uptick in home values and the area's consistently high homeownership rate. However, rent prices are expected to stabilize or potentially see a slight increase as the market adjusts to the higher home values. The rental market may become more attractive if rising home prices and interest rates make homeownership less accessible for some residents.
In summary, zip code 62242 demonstrates a strong preference for homeownership, with rates consistently above 84% over the past decade. Despite fluctuations in federal interest rates and a recent sharp increase, the local real estate market has shown resilience and growth. The declining average rent prices coupled with stable homeownership rates suggest a community deeply rooted in property ownership. As we look to the future, this area is likely to continue its trend of high homeownership, with potential for further appreciation in home values and a stabilizing rental market.
