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Rising Home Values and Declining Ownership: Dalzell's Shifting Housing Landscape
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Dalzell, located in Illinois, is a small community that has experienced notable shifts in its housing market over the past decade. The village has seen a gradual decline in homeownership rates, coupled with fluctuations in average home prices and rent costs. This analysis will explore the intricate relationship between these factors and their impact on the local real estate landscape.
From 2013 to 2022, Dalzell witnessed a steady decrease in homeownership rates, dropping from 77% to 72%. During this same period, average home prices showed a general upward trend, rising from $84,804 in 2013 to $115,233 in 2022, representing a 35.9% increase. This inverse relationship suggests that as home prices increased, fewer residents were able to afford homeownership, leading to a shift towards renting.
Federal interest rates play a significant role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates in Dalzell remained relatively stable at 77%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined to 72%. This trend aligns with the general principle that lower interest rates encourage homeownership due to more affordable financing options.
Conversely, the percentage of renters in Dalzell increased from 22% in 2013 to 27% in 2022. Average rent prices fluctuated during this period, starting at $743 in 2013, peaking at $801 in 2014, and then settling at $775 in 2022. The overall increase in rent prices, coupled with the rise in the renter population, suggests growing demand for rental properties in the area. This trend may be attributed to the declining affordability of homeownership and the village's decreasing population, which fell from 625 in 2013 to 554 in 2022.
In 2023 and 2024, Dalzell experienced a significant surge in average home prices. The average home price jumped to $130,866 in 2023 and further increased to $138,284 in 2024, representing a 20% rise from 2022 to 2024. This sharp increase coincided with a dramatic rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rapidly appreciating home values, are likely to further impact homeownership rates in the village.
Looking ahead, predictive models suggest that average home prices in Dalzell may continue to rise over the next five years, potentially reaching around $160,000 by 2029. This projection is based on the strong upward trend observed in recent years. Average rent prices are also expected to increase, potentially surpassing $850 per month by 2029, driven by the growing demand for rental properties and the overall appreciation of real estate in the area.
In summary, Dalzell has experienced a gradual shift from homeownership to renting, influenced by rising home prices and fluctuating interest rates. The recent surge in both home prices and interest rates is likely to accelerate this trend. As the village continues to evolve, these housing market dynamics will play a crucial role in shaping its residential landscape and community composition in the coming years.
