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Rising Home Values and High Ownership Rates: Homer, Illinois' 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
Homer, Illinois, is a small community that has experienced notable demographic and housing market shifts over the past decade. The city has maintained a high rate of homeownership, with average home prices showing a general upward trend. Meanwhile, average rent prices have also increased, albeit with some fluctuations.
Homeownership in Homer has remained consistently high, ranging from 84% to 88% between 2013 and 2022. This stability in homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $110,234, which rose to $153,470 by 2022, representing a 39% increase over this period. The most significant annual jump occurred between 2020 and 2021, with average home prices rising from $131,517 to $142,009, a 7.9% increase in a single year.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, corresponding with homeownership rates of 84-85%. As interest rates began to rise in 2017, reaching 1.83% by 2018, homeownership actually increased slightly to 86%. This suggests that local factors may have had a stronger influence on homeownership than national interest rates during this period.
The percentage of renters in Homer has remained relatively low, fluctuating between 12% and 16% from 2013 to 2022. Average rent prices have shown an overall upward trend during this time. In 2013, the average rent was $722, which increased to $855 by 2022, a rise of 18.4%. Interestingly, there was a dip in average rent from $722 in 2013 to $670 in 2014, before it began to climb steadily. The population of Homer has fluctuated during this period, peaking at 1,567 in 2017 before declining to 1,384 in 2022, which may have influenced rental market dynamics.
In 2023, the average home price in Homer reached $155,542, continuing the upward trend. By 2024, this figure has further increased to $163,840, representing a 5.3% rise in a single year. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing market dynamics in the village.
Looking ahead, predictive models suggest that average home prices in Homer are likely to continue their upward trajectory over the next five years, potentially reaching around $180,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $900 per month within the same timeframe. However, these projections may be influenced by various factors, including economic conditions, local development, and population changes.
In summary, Homer has maintained a high rate of homeownership despite rising home prices. The rental market, while smaller, has seen steady increases in average rents. The recent sharp rise in federal interest rates, coupled with continued growth in home prices, may present new challenges for potential homebuyers in the coming years. These trends underscore the dynamic nature of Homer's housing market and its resilience in the face of changing economic conditions.
