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Rising Home Values and Ownership Rates in Farmer City, 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
Farmer City, a small community in Illinois, has experienced notable shifts in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, revealing interesting patterns in this central Illinois city. The homeownership rate in Farmer City has shown a significant upward trend in recent years. From 2013 to 2022, the percentage of owner-occupied homes increased from 82% to 85%. This rise in homeownership coincided with a steady increase in average home prices. In 2012, the average home price in Farmer City was $88,577, and by 2022, it had risen to $126,678, representing a 43% increase over this period.
The relationship between federal interest rates and homeownership rates in Farmer City appears to follow the expected pattern. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates generally increased. For instance, when the interest rate was 0.38% in 2020, the homeownership rate reached 80%, up from 76% in 2019 when the interest rate was higher at 2.16%.
Conversely, the percentage of renters in Farmer City has decreased over time, from 24% in 2016 to 15% in 2022. Despite this decline in the renter population, average rent prices have shown volatility. The average rent increased from $703 in 2013 to $882 in 2021, before dropping to $727 in 2022. This fluctuation in rent prices, despite a decreasing renter population, could be attributed to various local economic factors.
Looking at the most recent data, the average home price in Farmer City reached $132,150 in 2023 and further increased to $137,838 in 2024. These figures represent a continued upward trend in home values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates.
Applying predictive models to forecast the next five years, we anticipate that average home prices in Farmer City will continue to rise, potentially reaching around $160,000 by 2029. Average rent prices are expected to stabilize and gradually increase, possibly reaching $950 per month by 2029. These predictions assume a continuation of current economic conditions and local market trends.
In summary, Farmer City has seen a strong trend towards homeownership, with increasing average home prices and a decreasing renter population. The recent rise in interest rates may influence future homeownership rates, but the steady increase in home values suggests a robust local housing market. The volatility in rent prices, despite a shrinking renter population, indicates a complex rental market that may be influenced by factors beyond supply and demand.
