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Rising Home Values and Changing Ownership in Zip Code 62025: Edwardsville's Evolving 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
Zip code 62025, located in Edwardsville, Illinois, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual shift in its housing market dynamics, with notable trends in both ownership and rental sectors.
The homeownership rate in zip code 62025 has shown a slight decline over the years. In 2013, 75% of housing units were owner-occupied. By 2022, this figure had decreased to 73%. During this same period, average home prices in the area saw a substantial increase. In 2013, the average home price was $187,553, and by 2022, it had risen to $286,746, representing a 52.9% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 2.16%), homeownership rates actually decreased slightly. This suggests that other factors, such as rising home prices, may have had a stronger influence on homeownership trends in this area than interest rates alone.
Rental trends in zip code 62025 have also shown notable changes. The percentage of renter-occupied housing units increased from 25% in 2013 to 27% in 2022. Correspondingly, average rent prices rose from $1,001 in 2013 to $1,087 in 2022, an 8.6% increase. However, it's worth noting that rent prices peaked at $1,203 in 2021 before slightly decreasing in 2022. The population growth from 33,636 in 2013 to 36,613 in 2022 likely contributed to the increased demand for rental properties.
In 2023 and 2024, the housing market in zip code 62025 continued to evolve. The average home price reached $294,764 in 2023 and further increased to $304,626 in 2024, representing a 6.2% rise over two years. This occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, yet home prices in this area continued to appreciate.
Looking ahead, predictive models suggest that average home prices in zip code 62025 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the area's desirability. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, zip code 62025 has experienced a gradual shift towards more renter-occupied housing, alongside significant increases in both average home prices and average rent prices. Despite rising interest rates, the area's housing market has shown resilience, with continued price appreciation. These trends reflect the complex interplay of population growth, economic factors, and housing supply in shaping the local real estate landscape.
