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Rising Home Values and High Ownership Rates: Pesotum'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
Pesotum, located in Illinois, is a small rural community with a rich agricultural heritage. Over the past decade, this village has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting the dynamic nature of its housing market.
The homeownership rate in Pesotum has remained consistently high, with a slight decline in recent years. In 2013, 92% of residents were homeowners. This rate peaked at 97% in 2017 before decreasing to 82% in 2022. Despite this recent decline, Pesotum maintains a strong culture of homeownership. Average home prices have shown a steady upward trend, rising from $126,418 in 2010 to $175,662 in 2022, representing a 39% increase over 12 years.
The relationship between federal interest rates and homeownership rates in Pesotum is notable. From 2013 to 2017, when interest rates were historically low (ranging from 0.11% to 1%), homeownership rates increased from 92% to 97%. As interest rates began to rise more sharply from 2018 onwards, reaching 1.68% in 2022, homeownership rates declined to 82%. This trend aligns with the general expectation that lower interest rates encourage homeownership due to more affordable financing options.
Renter percentages in Pesotum have generally been low but have shown an increase in recent years. In 2013, only 8% of residents were renters. This percentage dropped to a low of 3% in 2017 before rising to 18% in 2022. Average rent prices have fluctuated over the years, with a peak of $962 in 2013 and a low of $872 in 2021. In 2022, the average rent was $885. The recent increase in renter percentages may be attributed to the growing population, which rose from 627 in 2010 to 682 in 2022, potentially creating more demand for rental properties.
In 2023, the average home price in Pesotum reached $180,282, continuing the upward trend observed in previous years. This increase occurred despite a significant rise in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has further increased to $188,233, while federal interest rates have slightly risen to 5.33%. These figures indicate a resilient housing market in Pesotum, with home values continuing to appreciate even in a high-interest rate environment.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in Pesotum to continue their upward trajectory, potentially reaching around $220,000 by 2029. This projection is based on the consistent growth observed over the past decade and the current momentum in the market. For average rent prices, we expect a moderate increase, potentially reaching approximately $950 by 2029, assuming the trend of population growth and increased demand for rentals continues.
In summary, Pesotum has maintained a strong homeownership culture despite recent fluctuations. The housing market has shown resilience with steadily increasing average home prices, even in the face of rising interest rates. The slight shift towards more renters in recent years, coupled with moderate rent price increases, suggests a diversifying housing market that may continue to evolve to meet the needs of a growing population.
