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Rising Home Values and Increased Ownership in Sheffield, Illinois: A Decade of Change
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
Sheffield, Illinois, a small community, has undergone significant demographic changes over the past decade. The city has experienced fluctuations in its population, homeownership rates, and housing market dynamics. Overall, there has been a trend towards increased homeownership, rising average home prices, and increasing average rent prices.
The homeownership rate in Sheffield has shown a notable upward trend, particularly in recent years. In 2013, the homeownership rate was 77%, and by 2022, it had increased to 84%. This 7% increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $61,236, and by 2022, it had risen to $89,815, representing a 46.7% increase over this period.
The relationship between federal interest rates and homeownership rates in Sheffield appears to follow the general trend of lower interest rates encouraging homeownership. From 2013 to 2020, when interest rates were historically low (ranging from 0.11% to 0.38%), the homeownership rate increased from 77% to 80%. This trend continued into 2021 and 2022, with homeownership reaching 84% while interest rates remained relatively low at 0.08% and 1.68%, respectively.
Conversely, the percentage of renters in Sheffield has decreased over time, from 22% in 2013 to 16% in 2022. Despite this decrease in the renter population, average rent prices have shown a steady increase. In 2013, the average rent was $634, and by 2022, it had risen to $861, a 35.8% increase. This trend suggests that while fewer people are renting, those who do are paying significantly more.
Looking at the most recent data for 2023 and 2024, we see a continuation of the upward trend in average home prices. In 2023, the average home price in Sheffield reached $93,699, and in 2024, it further increased to $102,691. This represents a 14.3% increase from 2022 to 2024. Interestingly, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which is the highest level since 2007.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Sheffield to continue rising, potentially reaching around $120,000 to $125,000 by 2029. Average rent prices are also likely to increase, possibly reaching $950 to $1,000 per month in the same timeframe. These predictions assume a continuation of current trends and do not account for unforeseen economic changes.
In summary, Sheffield has experienced a significant shift towards homeownership, with a corresponding decrease in the renter population. Despite this, both average home prices and average rent prices have shown substantial increases. The recent sharp rise in interest rates, coupled with continuing increases in home prices, suggests a potentially changing landscape for homeownership and rental markets in the coming years.
