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Rising Home Values and High Ownership Rates: Caledonia's Unique 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
Caledonia, located in Illinois, is a small but vibrant community with a population of 810 as of 2022. The village has experienced interesting fluctuations in homeownership rates and housing prices over the past decade. Overall, Caledonia has maintained a high rate of homeownership, with average home prices showing a steady upward trend, while average rent prices have been more volatile.
Homeownership in Caledonia has remained consistently high, ranging from 93% to 99% between 2013 and 2022. This strong preference for homeownership aligns with the trend in average home prices, which have seen a significant increase over the years. In 2010, the average home price was $193,120, and by 2022, it had risen to $286,433, representing a 48.3% increase over 12 years. The most substantial growth occurred between 2020 and 2022, with average home prices jumping from $226,820 to $286,433, a 26.3% increase in just two years.
The relationship between federal interest rates and homeownership rates in Caledonia shows an interesting dynamic. Despite fluctuations in interest rates, homeownership remained consistently high. For instance, in 2013, when interest rates were at 0.11%, homeownership was at 96%. By 2022, with interest rates at 1.68%, homeownership was still at 95%. This suggests that other factors, such as local economic conditions or community preferences, may have a stronger influence on homeownership in Caledonia than interest rates alone.
Renter percentages in Caledonia have been relatively low, ranging from 1% to 6% between 2013 and 2022. Average rent prices have shown some volatility over this period. In 2013, the average rent was $1,259, peaking at $1,333 in 2017 before declining to $949 in 2021. Interestingly, in 2022, there was a significant jump in average rent to $1,300, a 36.9% increase from the previous year. This spike in rent prices coincided with a slight increase in the renter percentage from 3% in 2020 to 5% in 2022, potentially indicating growing demand for rental properties.
Looking at the most recent data, the average home price in Caledonia continued to rise, reaching $295,051 in 2023 and $310,937 in 2024. This represents a 3% increase from 2022 to 2023 and a further 5.4% increase from 2023 to 2024. Concurrently, federal interest rates have also increased significantly, rising from 5.02% in 2023 to 5.33% in 2024. Despite these higher interest rates, home prices have continued to appreciate, suggesting strong demand in the local housing market.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Caledonia to continue their upward trajectory. Based on the historical data and recent growth rates, average home prices could potentially reach around $360,000 to $380,000 by 2029. For average rent prices, the forecast is less certain due to past volatility. However, if the recent upward trend continues, we might see average rents in the range of $1,400 to $1,500 by 2029.
In summary, Caledonia has maintained a strong preference for homeownership, with consistently high rates despite fluctuations in interest rates and home prices. The steady increase in average home prices, particularly the significant growth in recent years, suggests a robust local housing market. While the rental market is smaller, it has shown recent signs of growth with increasing rents and a slight uptick in renter percentages. As Caledonia continues to evolve, these housing trends will play a crucial role in shaping the community's future development and demographics.
