Loading Content...
Rising Home Values and Ownership in Zip Code 62347: Adams's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 62347, encompassing Adams in Illinois, presents an intriguing case study of housing market dynamics in a small rural community. Over the past decade, this area has experienced notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Adams has shown a general upward trend, increasing from 83% in 2013 to 89% in 2022. This rise in homeownership coincides with a significant increase in average home prices, which grew from $121,535 in 2012 to $186,795 in 2022, representing a 53.7% increase over this period. The relationship between homeownership rates and average home prices appears to be positive, suggesting that rising property values have not deterred local residents from purchasing homes.
Federal interest rates have played a crucial role in shaping homeownership trends in Adams. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the initial increase in homeownership from 83% to 86%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate continued to climb, reaching its peak of 89% in 2022. This suggests that other local factors, such as job market stability or community preferences, may have outweighed the impact of rising interest rates on homeownership decisions.
Renter percentages in Adams have inversely mirrored the homeownership trend, declining from 17% in 2013 to 11% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. From 2013 to 2022, average rent prices fluctuated significantly, starting at $538 in 2013, dropping to $491 in 2015, then rising sharply to $790 in 2020, before settling at $751 in 2022. This volatility in rent prices, coupled with the declining renter population, suggests a complex rental market influenced by factors such as housing supply, local economic conditions, and possibly the conversion of rental properties to owner-occupied homes.
In 2023 and 2024, the housing market in Adams continued its upward trajectory. Average home prices reached $204,849 in 2023 and further increased to $207,847 in 2024, representing a 11.3% increase from 2022 to 2024. This growth occurred despite a significant rise in federal interest rates, which climbed to 5.02% in 2023 and 5.33% in 2024. The continued appreciation in home values despite higher borrowing costs suggests strong underlying demand for housing in this area.
Looking ahead, predictive models suggest that average home prices in Adams are likely to continue their upward trend over the next five years, albeit at a potentially slower pace due to the current high interest rate environment. Average rent prices, which have shown volatility in the past, are predicted to stabilize and potentially increase moderately, reflecting the limited supply of rental properties in an area with a high homeownership rate.
In summary, Adams (zip code 62347) has demonstrated a robust housing market characterized by increasing homeownership rates and rising average home prices over the past decade. The area has shown resilience to rising interest rates, maintaining strong home value appreciation. The rental market, while smaller, has experienced significant price fluctuations, reflecting the dynamic nature of housing demand in this rural Illinois community. As the local housing market continues to evolve, it will be crucial to monitor how these trends impact affordability and community demographics in the coming years.
