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Rising Home Values and Ownership: Altona's Shifting Housing Landscape
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
Altona, Illinois, is a small community that has experienced notable shifts in homeownership and housing market dynamics over the past decade. The village has seen a significant increase in homeownership rates, accompanied by fluctuations in average home prices and rent costs. The trend in homeownership in Altona has been consistently upward since 2013. In 2013, the homeownership rate stood at 84%, and by 2022, it had increased to an impressive 92%. This 8 percentage point increase represents a substantial shift towards owner-occupied housing in the community. Concurrently, average home prices have shown a general upward trend. From 2017 to 2021, average home prices rose from $90,386 to $111,380, an increase of about 23% over four years. This correlation suggests that the growing desire for homeownership in Altona has contributed to the appreciation of property values.
Federal interest rates have played a role in shaping homeownership trends in Altona. The period from 2013 to 2021 was characterized by historically low interest rates, ranging from 0.08% to 1.83%. These low rates likely contributed to the increased homeownership rates by making mortgages more affordable for residents. The sharp rise in homeownership from 87% in 2019 to 92% in 2022 coincided with interest rates dropping from 2.16% in 2019 to 0.08% in 2021, before rising again to 1.68% in 2022.
As homeownership rates increased, the percentage of renters in Altona decreased correspondingly. The renter-occupied housing rate fell from 16% in 2013 to just 8% in 2022. Despite this decline in the renter population, average rent prices showed an upward trend. The average rent increased from $514 in 2013 to $735 in 2022, a rise of approximately 43% over nine years. This increase in rent prices, despite a shrinking renter population, may be attributed to various factors such as improved housing quality or limited rental stock in the face of overall population growth.
In 2023 and 2024, Altona experienced some fluctuations in the housing market. The average home price decreased to $103,170 in 2023 but rebounded to $108,638 in 2024. This recovery occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the village.
Looking ahead, predictive models suggest that average home prices in Altona may continue to rise moderately over the next five years, potentially reaching around $120,000 by 2029. Rent prices are also expected to follow an upward trajectory, potentially increasing to approximately $850 per month in the same timeframe. These projections assume a continuation of current economic conditions and local market trends.
In summary, Altona has experienced a significant shift towards homeownership, with rates increasing from 84% to 92% between 2013 and 2022. This trend has been accompanied by appreciating home values and rising rent prices. The interplay between federal interest rates, homeownership rates, and housing costs highlights the complex dynamics of the local real estate market. As Altona moves forward, these trends will likely continue to shape the community's housing landscape.
