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Rising Home Values and Ownership in Palmyra, Illinois: A Decade of Housing Market Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Palmyra, located in Illinois, is a small community that has experienced significant shifts in its housing landscape over the past decade. The town has seen a notable trend towards increased homeownership, coupled with fluctuations in average home prices and rent costs.
From 2013 to 2022, Palmyra witnessed a substantial increase in homeownership rates. In 2013, 59% of residents owned their homes, while by 2022, this figure had risen to 76%, representing a 17 percentage point increase. During this same period, average home prices in Palmyra showed interesting fluctuations. In 2014, the average home price was $99,333, which declined to $85,830 by 2018, before rebounding to $115,359 in 2022. This represents a 16.1% increase in average home prices from 2014 to 2022, despite the initial decline.
The trends in homeownership rates and average home prices appear to have been influenced by federal interest rates. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.09% to 0.40%), homeownership in Palmyra increased from 59% to 63%. As interest rates began to rise more significantly from 2017 onwards, the pace of homeownership growth accelerated, possibly as residents sought to secure mortgages before rates increased further.
Conversely, the percentage of renters in Palmyra decreased from 41% in 2013 to 24% in 2022. Despite this decline in the renter population, average rent prices saw a consistent upward trend. In 2013, the average rent was $468, which increased to $662 by 2022, representing a 41.5% rise. This trend suggests that even as fewer residents opted to rent, those who did faced higher costs, possibly due to limited rental supply or improved quality of available rentals.
In 2023 and 2024, Palmyra continued to see growth in average home prices, reaching $117,258 in 2023 and $118,936 in 2024. This represents a modest but steady increase of 1.7% and 1.4% respectively from the previous years. Notably, federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends and affordability.
Looking ahead, based on the trends observed, we can forecast that average home prices in Palmyra may continue to rise moderately over the next five years, potentially reaching around $130,000 by 2029. Average rent prices, if following the current trajectory, could increase to approximately $800 per month in the same timeframe. However, these projections may be influenced by various factors including economic conditions, local development, and population changes.
In summary, Palmyra has experienced a significant shift towards homeownership, with 76% of residents owning their homes by 2022. Despite fluctuations, average home prices have shown an overall upward trend, while average rent prices have consistently increased. The interplay between federal interest rates, homeownership rates, and housing costs presents a complex picture of Palmyra's evolving housing market.
