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Rising Home Values and Ownership in Herscher: A Decade of Housing Market Dynamics
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
Herscher, located in Illinois, is a small community that has experienced fluctuations in population and housing trends over the past decade. The village has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic and demographic changes.
Homeownership rates in Herscher have shown a general upward trend from 2013 to 2022. In 2013, the homeownership rate was 77%, which increased to 80% by 2022. This rise in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $143,565, which steadily rose to $196,472 by 2022, representing a 36.9% increase over this period. The peak in homeownership was observed in 2018 at 83%, corresponding with an average home price of $144,488.
The relationship between federal interest rates and homeownership rates in Herscher shows some correlation. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 73-77%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased, reaching 82% in 2019. This suggests that other local factors may have had a stronger influence on homeownership than national interest rates during this period.
Renter percentages in Herscher have generally decreased as homeownership rates increased. In 2013, the renter percentage was 23%, which decreased to 20% by 2022. Interestingly, average rent prices have shown considerable volatility. In 2013, the average rent was $582, which dropped to a low of $480 in 2017 before rising sharply to $942 in 2022. This represents a 61.9% increase in average rent from 2013 to 2022, despite the decrease in renter percentage. The sharp increase in rent prices, particularly from 2021 to 2022 (a 42.5% jump from $661 to $942), may be attributed to broader economic factors and limited rental inventory as homeownership increased.
In 2023 and 2024, Herscher saw a continuation of rising average home prices. The average home price reached $204,499 in 2023 and further increased to $208,695 in 2024. This represents a 4.1% and 6.2% increase from 2022, respectively. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting housing market dynamics.
Looking ahead, predictive models suggest that average home prices in Herscher may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by demand from those unable to enter the homeownership market due to higher mortgage costs. However, the rate of increase for both home prices and rents may moderate as the market adjusts to higher interest rates and potential economic changes.
In summary, Herscher has experienced a notable increase in homeownership rates and average home prices from 2013 to 2022, with this trend continuing into 2023 and 2024. The rental market has seen a decrease in the percentage of renters but a significant increase in average rent prices, particularly in recent years. These trends reflect a complex interplay of local market conditions, broader economic factors, and changing demographics in the village.
