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Rising Home Values and High Ownership Rates: Broadlands's Unique Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Broadlands, located in Illinois, is a small community that has experienced notable shifts in its housing market over the past decade. The village has seen fluctuations in its homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics.
The homeownership rate in Broadlands has shown a general upward trend from 2013 to 2020, with some fluctuations. In 2013, the homeownership rate was 89%, which increased to a peak of 93% in 2019. This rise in homeownership coincided with a steady increase in average home prices. From 2013 to 2020, average home prices rose from $97,166 to $118,456, representing a 22% increase over seven years. This trend suggests that despite rising home prices, local residents were increasingly able to purchase homes, possibly due to favorable economic conditions or local factors encouraging homeownership.
Federal interest rates play a significant role in homeownership trends. From 2013 to 2016, interest rates remained very low, ranging from 0.11% to 0.40%. This period coincided with the initial rise in homeownership rates in Broadlands, from 89% in 2013 to 91% in 2018. The low interest rates likely made mortgages more affordable, encouraging home purchases. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we see a continued increase in homeownership rates, reaching 93% in 2019, suggesting other local factors may have been influencing this trend.
The rental market in Broadlands has shown inverse trends to homeownership. The percentage of renters decreased from 14% in 2015 to 7% in 2019, aligning with the increase in homeownership. Interestingly, average rent prices fluctuated during this period. In 2013, the average rent was $832, peaking at $881 in 2014, before declining to $810 in 2019. This decrease in average rent prices, coupled with the declining renter population, suggests a potential oversupply of rental properties or a strong preference for homeownership in the community.
In 2023 and 2024, Broadlands saw a continued rise in average home prices, reaching $138,149 in 2023 and $148,166 in 2024. This represents a significant jump from the 2022 average of $139,480. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the 1.68% rate in 2022. These high interest rates could potentially impact future homeownership trends in the village.
Looking ahead, predictive models suggest that average home prices in Broadlands may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices might stabilize or see modest increases as the rental market adjusts to changes in homeownership rates and overall housing demand.
In summary, Broadlands has experienced a notable increase in homeownership rates and average home prices over the past decade, while the rental market has contracted. The recent sharp rise in interest rates and home prices presents a new dynamic that may influence future housing trends in the village. The community's ability to maintain high homeownership rates in the face of rising prices and interest rates will be a key factor to watch in the coming years.
