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Rising Home Values and Declining Ownership in Zip Code 60468: Peotone's Changing Housing Landscape
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
Peotone, located in zip code 60468 in Illinois, has experienced significant changes in its housing market over the past decade. This small community, with a population of 5,754 in 2022, has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Peotone has shown a notable decline over the years. In 2013, the area boasted a high homeownership rate of 81%. However, by 2022, this figure had dropped to 69%, marking a significant shift in the local housing landscape. Interestingly, this decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in the area was $176,307. By 2022, this figure had risen to $258,625, representing a 46.7% increase over nine years.
The relationship between federal interest rates and homeownership rates in Peotone follows a well-established trend. As interest rates remained low between 2013 and 2021, ranging from 0.08% to 0.4%, homeownership rates initially remained stable. However, despite these low rates, the area still experienced a gradual decline in homeownership, possibly due to rising home prices outpacing income growth. The sharp increase in interest rates to 1.68% in 2022 coincided with a further drop in homeownership to 69%, suggesting that higher borrowing costs may have deterred some potential buyers.
As homeownership declined, the percentage of renters in Peotone increased from 19% in 2013 to 31% in 2022. This shift was accompanied by fluctuations in average rent prices. In 2013, the average rent was $1,053, which remained relatively stable until 2020 when it was $1,003. However, by 2022, average rent had decreased slightly to $1,001, despite the increased demand for rental properties. This could be attributed to various factors, including local economic conditions or an increase in rental housing supply.
Looking at the most recent data, average home prices in Peotone continued to rise, reaching $270,811 in 2023 and $288,442 in 2024. This represents a 4.7% increase from 2022 to 2023 and a further 6.5% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Peotone will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $330,000 to $350,000, assuming a moderate annual growth rate of 3-4%. For average rent prices, we expect a gradual increase to around $1,150 to $1,200 by 2029, factoring in historical trends and potential increases in demand for rental properties.
In summary, Peotone has experienced a significant shift in its housing market over the past decade. The decline in homeownership rates, coupled with rising average home prices, suggests a changing landscape where owning a home has become less accessible for some residents. The increase in the renter population, despite relatively stable rent prices, indicates a growing demand for rental properties. As interest rates continue to rise and home prices maintain their upward trajectory, these trends are likely to persist, shaping the future of housing in this Illinois community.
