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Rising Home Values and Ownership in Zip Code 62501: Argenta's Resilient Housing Market
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 62501, located in Argenta, Illinois, has experienced notable shifts in homeownership and housing market dynamics over the past decade. This area, covering 75.32 square miles, has seen a gradual increase in homeownership rates alongside fluctuating average home and rent prices. The homeownership rate in zip code 62501 has shown a steady upward trend, rising from 87% in 2013 to 92% in 2022. This increase in homeownership coincided with a general upward trajectory in average home prices. In 2014, the average home price was $125,065, which grew to $159,657 by 2022, representing a 27.7% increase over eight years. This trend suggests a strong correlation between rising homeownership rates and increasing property values in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 62501. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%, which likely contributed to the increased homeownership rates observed during this time. As interest rates remained low, more residents may have found homeownership financially feasible, explaining the rise from 87% ownership in 2013 to 90% by 2020.
Conversely, the renter population in zip code 62501 has decreased over time, dropping from 12% in 2013 to 8% in 2022. This decline in renters corresponds with fluctuating average rent prices. The average rent peaked at $971 in 2013 and subsequently decreased to $729 in 2022, a 24.9% reduction. The declining renter population, coupled with decreasing rent prices, suggests a shift towards homeownership in the area, possibly driven by the affordability of purchasing homes compared to renting.
In 2023 and 2024, the housing market in zip code 62501 continued to evolve. The average home price reached $161,575 in 2023 and further increased to $171,403 in 2024, marking a significant 6.1% year-over-year growth. This upward trend occurred despite rising federal interest rates, which climbed to 5.02% in 2023 and 5.33% in 2024, indicating a robust local housing market resilient to higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in zip code 62501 may continue to rise over the next five years, potentially reaching around $190,000 by 2029 if current trends persist. Average rent prices, which have been more volatile, might stabilize or show modest increases, potentially reaching approximately $800 per month by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 62501 has experienced a significant shift towards homeownership, with rates increasing from 87% to 92% between 2013 and 2022. This trend has been accompanied by rising average home prices and declining average rents. The area has shown resilience to increasing interest rates, with continued growth in property values through 2024. These trends point to a strengthening housing market in the area, with a clear preference for homeownership among residents.
