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Rising Home Values and Changing Ownership Patterns in Freeport, Illinois: The Pretzel City's Housing Market Evolution
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
Freeport, Illinois, located in the northwestern part of the state, is a charming city known for its rich industrial history and picturesque landscapes. Over the past decade, Freeport has experienced notable shifts in its housing market, with homeownership rates and average home prices showing interesting trends. The homeownership rate in Freeport has seen a gradual decline from 2013 to 2022. In 2013, 64% of residents owned their homes, but by 2022, this figure had decreased to 58%. Despite this decline in homeownership, average home prices in Freeport have shown a consistent upward trend. In 2013, the average home price was $51,670, which steadily increased to $99,139 by 2022, representing a substantial 92% increase over this period.
The relationship between federal interest rates and homeownership rates in Freeport follows a generally established pattern. As interest rates remained low from 2013 to 2016, hovering around 0.1% to 0.4%, homeownership rates remained relatively stable at 60-64%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% by 2022, homeownership rates showed a slight decline, dropping to 58% in 2022.
The renter population in Freeport has increased as homeownership has declined. In 2013, 36% of residents were renters, which grew to 42% by 2022. This shift coincides with a rise in average rent prices. In 2013, the average rent was $636 per month, which increased to $761 by 2022, a 20% increase over nine years. This trend suggests a growing demand for rental properties in Freeport, possibly driven by factors such as changing demographics or economic conditions.
In 2023 and 2024, Freeport's housing market continued to evolve. The average home price reached $102,517 in 2023 and further increased to $108,519 in 2024, showing a continued upward trajectory. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability for many residents.
Looking ahead, based on the observed trends, we can predict that average home prices in Freeport will likely continue to rise over the next five years, potentially reaching around $130,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $850 per month within the same timeframe. These projections assume a continuation of current economic conditions and housing market trends.
In summary, Freeport's housing market has shown resilience and growth over the past decade, with rising home values despite a slight decrease in homeownership rates. The rental market has expanded, with increasing rent prices reflecting growing demand. As the city moves forward, these trends suggest a dynamic housing market that continues to evolve, presenting both opportunities and challenges for residents and potential homebuyers in Freeport.
