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Rising Home Values and Declining Ownership in Elizabethtown, Illinois: A Decade of Housing Market Shifts
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
Elizabethtown, located in Illinois, is a small community that has experienced fluctuations in its population and housing market over the past decade. The city has seen a general trend of decreasing homeownership rates, accompanied by rising average home prices. Meanwhile, average rent prices have shown some volatility, with recent years indicating a downward trend.
The homeownership rate in Elizabethtown has declined notably from 2013 to 2022. In 2013, 77% of housing units were owner-occupied, but by 2022, this figure had dropped to 63%. During this same period, average home prices showed a significant upward trend. In 2016, the average home price was $76,805, and by 2022, it had increased to $100,524, representing a 30.9% rise over six years. This inverse relationship between homeownership rates and average home prices suggests that as homes became more expensive, fewer residents were able to afford homeownership.
Federal interest rates have played a role in shaping homeownership trends in Elizabethtown. From 2013 to 2016, interest rates remained relatively low, ranging from 0.11% to 0.4%. During this period, homeownership rates remained relatively stable, hovering around 77-78%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply, falling to 63% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The percentage of renters in Elizabethtown has increased from 23% in 2013 to 37% in 2022, mirroring the decline in homeownership. Interestingly, despite the rise in the renter population, average rent prices have shown a downward trend in recent years. In 2016, the average rent was $318, but by 2022, it had decreased to $235, a 26.1% reduction. This decline in rent prices, despite an increasing renter population, could be attributed to various factors such as local economic conditions or changes in housing supply.
Looking at the most recent data, the average home price in Elizabethtown was $99,364 in 2023 and increased to $106,787 in 2024, indicating a continued upward trend in home values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates may continue to impact homeownership rates in the near future.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Elizabethtown will continue to rise, potentially reaching around $120,000 by 2029. However, the rate of increase may slow down due to the current high interest rates. For rent prices, the model suggests a potential stabilization or slight increase, possibly reaching an average of $250-$275 per month by 2029, assuming economic conditions remain relatively stable.
In summary, Elizabethtown has experienced a shift towards a higher proportion of renters over the past decade, coupled with rising home prices and fluctuating rent prices. The inverse relationship between homeownership rates and both home prices and interest rates has been evident. Moving forward, the housing market in Elizabethtown is likely to continue evolving, with home prices expected to rise moderately and rent prices potentially stabilizing or increasing slightly.
