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Rising Home Values and High Ownership in Zip Code 61849: Homer's Resilient Housing Market
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 61849, located in Homer, Illinois, presents an intriguing case study of homeownership and housing market dynamics. This area has maintained a consistently high rate of owner-occupied housing, hovering around 85% throughout the observed period. The average home prices have shown a general upward trend, while average rent prices have fluctuated over the years.
The homeownership rate in zip code 61849 has remained remarkably stable, with only minor fluctuations between 84% and 88% from 2013 to 2022. This stability in homeownership coincides with a steady increase in average home prices. In 2010, the average home price was $120,237, which rose to $155,565 by 2022, representing a 29.4% increase over 12 years. Notably, the most significant jump occurred between 2020 and 2022, with prices rising from $133,561 to $155,565, a 16.5% increase in just two years.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2010 to 2015 saw historically low interest rates, ranging from 0.09% to 0.18%. During this time, homeownership rates remained high, likely due to the affordability of mortgages. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, the homeownership rate in the zip code showed resilience, maintaining its high level at 85%.
The renter population in zip code 61849 has remained relatively small, fluctuating between 12% and 16% from 2013 to 2022. Average rent prices have shown considerable volatility over this period. In 2013, the average rent was $789, which increased to $919 by 2021, representing a 16.5% rise. However, there were significant fluctuations in between, with the lowest average rent of $706 recorded in 2016 and the highest of $919 in 2021. Interestingly, despite the overall population growth from 1,858 in 2013 to 1,816 in 2022, the renter percentage remained stable at 15% in both years.
In 2023, the average home price in zip code 61849 reached $158,253, continuing the upward trend. This increase occurred despite a sharp rise in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has further increased to $166,811, while federal interest rates have slightly risen to 5.33%. This demonstrates the local housing market's resilience in the face of rising interest rates.
Looking ahead, based on the observed trends and current economic conditions, we can project continued growth in average home prices for zip code 61849. Applying a conservative annual growth rate of 3-4%, we might expect average home prices to reach approximately $195,000-$205,000 by 2029. For rent prices, considering the historical volatility, a more modest growth projection of 1-2% annually could see average rents increase to around $830-$870 by 2029.
In summary, zip code 61849 demonstrates a robust and stable housing market characterized by high homeownership rates and steadily increasing average home prices. Despite fluctuations in average rent prices and rising interest rates, the area has maintained its appeal to homeowners. The continued price appreciation, even in the face of higher interest rates, suggests a strong local real estate market with potential for further growth in the coming years.
