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Rising Home Values and Declining Ownership in Zip Code 61728: Colfax's Evolving Real Estate 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
Zip code 61728, representing Colfax in Illinois, has experienced notable shifts in homeownership rates and housing prices over the past decade. This small community, with a population of 1,729 in 2022, has seen interesting dynamics in its real estate market. The ownership percentage in Colfax has shown a declining trend, while average home prices have steadily increased. In 2013, 81% of residents were homeowners, but by 2022, this figure had dropped to 72%. During the same period, average home prices rose from $99,295 in 2013 to $127,192 in 2022, representing a 28% increase. This inverse relationship suggests that rising home prices may be making homeownership less accessible for some residents.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (0.11% to 0.4%), homeownership rates remained relatively stable, hovering around 80-83%. However, as interest rates began to rise more substantially from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply, falling from 85% in 2017 to 72% in 2022.
As homeownership rates decreased, the percentage of renters in Colfax increased from 19% in 2013 to 28% in 2022. This shift coincided with a significant rise in average rent prices, which grew from $571 in 2013 to $883 in 2022, a 55% increase. The growing renter population and rising rent prices suggest an increasing demand for rental properties in the area, possibly driven by those unable to afford homeownership.
In 2023 and 2024, the real estate market in Colfax continued to evolve. Average home prices reached $137,554 in 2023 and further increased to $148,111 in 2024, representing a 16.4% growth over two years. This substantial increase occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that average home prices in zip code 61728 may continue to rise over the next five years, potentially reaching around $170,000 by 2029 if current trends persist. Average rent prices are also expected to increase, possibly surpassing $1,000 per month within the same timeframe.
In summary, Colfax has experienced a clear shift towards renting, with declining homeownership rates and rising average home and rent prices. The interplay between federal interest rates, housing affordability, and changing demographics has significantly shaped the local real estate landscape. As the community continues to evolve, these trends are likely to have lasting impacts on the housing market in zip code 61728.
