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Rising Home Values and Ownership in Arenzville: A Small Illinois Village's Housing Transformation
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Arenzville, located in Illinois, is a small community with a rich history dating back to its founding in 1852. Over the past decade, this charming village has experienced significant changes in homeownership rates and housing market dynamics. The overall trend shows an increase in homeownership, rising average home prices, and fluctuating average rent prices.
The homeownership rate in Arenzville has shown a notable upward trend, increasing from 72% in 2013 to 84% in 2022. This substantial rise in homeownership coincides with the growth in average home prices. In 2016, the average home price was $112,818, and it steadily increased to $155,855 by 2022, representing a 38% increase over six years. This parallel growth suggests a strong correlation between rising home values and the increasing proportion of homeowners in the village.
The relationship between federal interest rates and homeownership rates in Arenzville follows a generally inverse pattern. As interest rates remained low between 2013 and 2020, ranging from 0.09% to 0.38%, homeownership rates increased from 72% to 85%. This trend aligns with the economic principle that lower interest rates tend to encourage homeownership due to more affordable financing options. However, it's worth noting that even as interest rates began to rise in 2022 to 1.68%, homeownership in Arenzville remained high at 84%, indicating other factors may also be influencing local homeownership trends.
The rental market in Arenzville has experienced a decline in the percentage of renters, dropping from 28% in 2013 to 16% in 2022. Despite this decrease, average rent prices have shown a significant upward trend. In 2013, the average rent was $579, which increased to $904 by 2022, representing a 56% rise over nine years. This inverse relationship between the percentage of renters and average rent prices could be attributed to various factors, including improved housing quality, limited rental inventory, or increased demand for the remaining rental properties.
In 2023 and 2024, Arenzville's housing market continued to evolve. The average home price in 2023 was $150,961, showing a slight decrease from 2022. However, in 2024, the average home price rebounded to $154,713. These fluctuations occurred against the backdrop of rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially influencing homebuying decisions in the village.
Looking ahead, based on the historical data and current trends, we can project the following 5-year trends for Arenzville: Average home prices are likely to continue their overall upward trajectory, potentially reaching around $170,000 to $180,000 by 2029, assuming a moderate annual growth rate of 2-3%. Average rent prices may continue to increase, potentially reaching $1,100 to $1,200 per month by 2029, based on the historical growth rate observed in recent years. The homeownership rate is expected to remain high, possibly stabilizing around 85-88%, as the village appears to be transitioning towards a predominantly owner-occupied community.
In summary, Arenzville has experienced a significant shift towards homeownership over the past decade, accompanied by rising home values and increasing average rent prices. The interplay between federal interest rates, local housing supply, and demographic changes has shaped these trends. As the village continues to evolve, it will be interesting to observe how these housing market dynamics unfold in the coming years.
