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Rising Home Values and Ownership Rates in Bethalto, Illinois: A Decade of Housing Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
United States Census Bureau: American Community Survey Data (ACS)
Zillow: Zillow Home Value Index (ZHVI)
Bethalto, located in Illinois, is a small community with a rich history and a dynamic real estate market. Over the past decade, this village has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions. The homeownership rate in Bethalto has shown a notable increase in recent years. In 2013, 73% of residents owned their homes, and this figure rose steadily to reach 80% by 2022. This upward trend in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $117,439, and it grew consistently year over year, reaching $169,908 by 2022. This represents a substantial 44.7% increase in average home values over a nine-year period.
The relationship between federal interest rates and homeownership rates in Bethalto aligns with well-established trends. During periods of lower interest rates, such as from 2013 to 2016 when rates remained below 0.5%, homeownership rates remained relatively stable around 71-73%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Bethalto actually increased to 80%. This suggests that local factors may have had a stronger influence on homeownership than national interest rates during this period.
The renter population in Bethalto has experienced a corresponding decline as homeownership increased. In 2013, 27% of residents were renters, but by 2022, this figure had dropped to 20%. Interestingly, despite the decreasing renter population, average rent prices showed some volatility. The average rent was $885 in 2013, peaked at $934 in 2016, and then fluctuated before settling at $835 in 2022. This represents a 5.6% decrease in average rent from 2013 to 2022, which could be attributed to the declining demand for rentals as more residents became homeowners.
In 2023 and 2024, Bethalto continued to see growth in average home prices. The average home price reached $178,675 in 2023 and further increased to $185,850 in 2024. This represents a 5.2% year-over-year increase from 2022 to 2023, and a 4% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest levels seen in over a decade.
Looking ahead, predictive models suggest that average home prices in Bethalto will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $210,000 by 2029. Average rent prices, which have shown more volatility, are predicted to stabilize and potentially increase slightly, possibly reaching around $900 per month by 2029.
In summary, Bethalto has experienced a strong trend towards homeownership, with a corresponding increase in average home prices over the past decade. Despite rising interest rates, the local real estate market has shown resilience, with continued growth in home values. The rental market has seen a decline in demand, reflected in both lower renter percentages and fluctuating rent prices. As the community continues to evolve, these trends suggest a preference for homeownership and a potentially competitive housing market in the coming years.
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