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Rising Home Values and High Ownership Rates in Harvel, Illinois: A Small Village'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
Harvel, located in Illinois, is a small community that has experienced fluctuations in its population and housing market over the past decade. The village has maintained a consistently high rate of homeownership, with average home prices showing an upward trend in recent years. Meanwhile, average rent prices have also seen changes, reflecting the dynamic nature of the local housing market.
The homeownership rate in Harvel has remained relatively stable, ranging from 83% to 88% between 2013 and 2022. This high rate of homeownership coincides with a general increase in average home prices. For instance, average home prices rose from $91,368 in 2017 to $114,879 in 2022, representing a 25.7% increase over five years. This trend suggests a strong correlation between the stable homeownership rates and the growing value of properties in the area.
Federal interest rates have played a significant role in shaping homeownership trends in Harvel. During periods of lower interest rates, such as from 2013 to 2016 when rates were below 0.5%, the homeownership rate remained high, ranging from 83% to 88%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate continued to remain stable, indicating the resilience of the local housing market and the community's preference for homeownership.
The renter population in Harvel has fluctuated between 12% and 17% from 2013 to 2022. Average rent prices have shown variability during this period. In 2013, the average rent was $672, which increased to $683 in 2014 and 2015. However, there was a decline to $631 in 2019, followed by a significant increase to $790 in 2022. This represents a 25.2% increase in average rent from 2019 to 2022. The fluctuations in rent prices and renter percentages may be influenced by the village's changing population, which decreased from 630 in 2010 to 488 in 2022.
Looking at the most recent data, average home prices in Harvel continued to rise, reaching $121,490 in 2023 and further increasing to $127,985 in 2024. This represents a 5.7% increase from 2022 to 2023 and an additional 5.3% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the 1.68% rate in 2022.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Harvel will continue to increase, potentially reaching around $150,000 by 2029. This projection is based on the consistent upward trend observed in recent years. Average rent prices are also expected to rise, potentially surpassing $900 per month within the next five years, following the upward trajectory seen since 2019.
In summary, Harvel has maintained a high rate of homeownership despite fluctuations in population and housing prices. The steady increase in average home prices, coupled with the recent sharp rise in federal interest rates, highlights the resilience of the local housing market. The rental market, while smaller, has shown significant growth in recent years, with average rents increasing substantially. These trends suggest a continuing strong demand for housing in Harvel, with both homeownership and rental markets likely to see further growth in the coming years.
