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Rising Home Values and Ownership Fluctuations in Zip Code 62549: Mount Zion'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
Mount Zion, located in zip code 62549 in Illinois, has experienced notable shifts in homeownership rates and housing prices over the past decade. This analysis explores the intricate relationship between ownership percentages, average home prices, and average rent prices in this community. The homeownership rate in Mount Zion has shown some fluctuation but has generally remained high, ranging from 75% to 82% between 2013 and 2022. This trend coincides with significant changes in average home prices. In 2014, the average home price in the area was $137,474, and it steadily increased to $169,366 by 2022, representing a 23.2% increase over eight years. This upward trend in home prices, coupled with consistently high homeownership rates, suggests a strong and stable housing market in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in Mount Zion. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.40%), homeownership rates remained high, peaking at 82% in 2014. As interest rates began to rise from 2017 onwards, there was a slight dip in homeownership, dropping to 75% in 2020. However, the community showed resilience, with ownership rates rebounding to 81% by 2022, despite rising interest rates.
Renter percentages in Mount Zion have inversely mirrored homeownership rates, fluctuating between 18% and 25% from 2013 to 2022. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $881, which decreased to $664 by 2016, a 24.6% drop. However, rent prices then began to climb, reaching $1,072 in 2021, a 61.4% increase from 2016. This surge in rent prices coincided with a period of population growth, as the village's population increased from 4,885 in 2016 to 4,979 in 2019, potentially driving up rental demand.
Looking at the most recent data, average home prices in Mount Zion continued to rise, reaching $171,324 in 2023 and further increasing to $178,740 in 2024. This represents a 5.5% year-over-year increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Mount Zion will continue to appreciate, potentially reaching around $200,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, the forecast suggests a more moderate increase, potentially stabilizing around $950-$1,000 per month by 2029, accounting for the recent volatility and overall upward trend.
In summary, Mount Zion has maintained a strong homeownership rate despite fluctuations in home prices and interest rates. The community has demonstrated resilience in its housing market, with home values appreciating steadily over time. The rental market has shown more volatility, with significant swings in average rent prices, likely influenced by population changes and broader economic factors. As the village moves forward, it is poised to continue its trend of increasing property values, while potentially seeing more stabilization in its rental market.
