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Rising Home Values and Ownership in Onarga, Illinois: A Decade of Housing Market 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
Onarga, located in Illinois, has experienced significant shifts in its housing market over the past decade. This small community has seen notable changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics. The ownership percentage in Onarga has shown a remarkable upward trend, increasing from 68% in 2013 to 82% in 2022. This substantial rise in homeownership coincided with fluctuations in average home prices. In 2016, the average home price was $92,305, which dipped to $89,914 in 2017 before steadily climbing to reach $134,404 by 2022. This represents a 45.5% increase in average home prices over six years, despite the initial decrease. The surge in homeownership, particularly from 2017 to 2022, suggests that residents were taking advantage of relatively affordable housing options, even as prices began to rise.
Federal interest rates appear to have played a role in the homeownership trends in Onarga. As interest rates remained low, hovering around 0.1% to 0.4% between 2013 and 2016, homeownership rates stabilized around 65-68%. The subsequent increase in interest rates to 1% in 2017 coincided with a jump in homeownership to 74%, possibly indicating a rush to purchase homes before rates climbed further. Despite rising interest rates in the following years, reaching 1.68% in 2022, homeownership continued to increase, suggesting other local factors were influential in driving this trend.
Conversely, the percentage of renters in Onarga decreased significantly from 32% in 2013 to 18% in 2022. This decline occurred alongside fluctuations in average rent prices. Average rent peaked at $716 in 2013, then generally decreased to $609 in 2019 before rising again to $728 in 2022. The overall population decline from 1,551 in 2013 to 1,320 in 2022 may have contributed to the reduced demand for rentals, potentially influencing the lower renter percentages despite the recent uptick in average rent prices.
In 2023 and 2024, Onarga experienced a slight correction in its housing market. The average home price decreased to $126,288 in 2023 and further to $122,419 in 2024. This represents a 8.9% decrease from the 2022 peak. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, potentially contributing to the cooling of home prices.
Looking ahead, predictive models suggest that average home prices in Onarga may stabilize or experience modest growth over the next five years, assuming interest rates remain relatively high. Average rent prices are likely to continue their upward trajectory, potentially reaching around $800-$850 by 2029, driven by inflation and the reduced supply of rental properties in the area.
In summary, Onarga has witnessed a significant shift towards homeownership, with a corresponding decrease in renters. Despite fluctuations, average home prices have shown overall growth, while average rent prices have recently rebounded after a period of decline. The interplay between federal interest rates, local economic conditions, and population changes has shaped these trends, creating a dynamic housing market in this Illinois village.
