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Rising Home Values and Ownership in Zip Code 62458: St. Elmo's Housing Market Evolution
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
Zip code 62458, encompassing St. Elmo in Illinois, presents an intriguing case study of homeownership and housing market dynamics in a small Midwestern community. Over the past decade, this area has experienced a notable shift towards increased homeownership, coupled with fluctuations in average home prices and average rent rates.
The homeownership rate in zip code 62458 has shown a strong upward trend, rising from 80% in 2013 to an impressive 89% in 2022. This significant increase in homeownership coincided with a general upward trend in average home prices. In 2012, the average home price was $79,047, which increased to $97,077 by 2022, representing a 22.8% growth over this period. Notably, there was a slight dip in average home prices between 2016 and 2018, with the lowest point at $82,034 in 2018, before rebounding and continuing its upward trajectory.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general economic principle that lower interest rates encourage homeownership. For instance, as interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.40%), homeownership rates held steady at 80%. Interestingly, even as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership in the area continued to increase, suggesting other local factors may have been influential in driving this trend.
Conversely, the percentage of renters in zip code 62458 has decreased from 20% in 2013 to 11% in 2022. This decline in the renter population has been accompanied by fluctuations in average rent prices. The average rent increased from $483 in 2013 to $659 in 2020, representing a 36.4% increase. However, there was a significant jump to $795 in 2021, followed by a decrease to $657 in 2022. These rent price changes occurred against a backdrop of varying population levels, with the population decreasing from 2,371 in 2013 to 2,247 in 2022, which may have influenced rental market dynamics.
Looking at the most recent data, the average home price in zip code 62458 continued its upward trend, reaching $101,791 in 2023 and further increasing to $105,083 in 2024. This represents a 8.2% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 62458 will continue to rise, potentially reaching around $120,000 by 2029. This projection is based on the consistent upward trend observed over the past decade, particularly the acceleration seen in recent years. For average rent prices, the forecast suggests a more moderate increase, potentially reaching around $750 by 2029, considering the historical fluctuations and recent stabilization in rent prices.
In summary, zip code 62458 has experienced a significant shift towards homeownership over the past decade, with homeownership rates rising from 80% to 89%. This trend has been accompanied by a general increase in average home prices, despite fluctuations in federal interest rates. The rental market has seen a decline in the percentage of renters and fluctuations in average rent prices. Recent data shows continued growth in average home prices, reaching $105,083 in 2024, with projections suggesting further increases in both home prices and rent rates over the next five years.
