Loading Content...
Rising Home Values and Ownership Rates in Humboldt, Illinois: A Decade of Housing Market Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Humboldt, Illinois is a small community located in Coles County. With a population of 1,738 in 2022 and covering just 0.34 square miles, it offers a close-knit rural atmosphere. Over the past decade, Humboldt has experienced notable shifts in homeownership rates and housing market dynamics, with a general trend towards increased owner-occupancy and rising average home and rent prices.
The homeownership rate in Humboldt has shown a significant upward trend, increasing from 79% in 2013 to 83% in 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2016, the average home price was $103,946, which grew to $118,365 by 2022, representing a 13.9% increase over six years. This positive correlation between homeownership rates and average home prices suggests a growing demand for property ownership in the village.
Federal interest rates have played a role in shaping homeownership trends in Humboldt. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. This low-interest environment likely contributed to the rise in homeownership, as mortgages became more affordable. The homeownership rate peaked at 89% in 2021 when interest rates were at a mere 0.08%, demonstrating the strong inverse relationship between interest rates and homeownership.
While homeownership increased, the percentage of renters in Humboldt decreased from 21% in 2013 to 17% in 2022. Despite this decline, average rent prices saw a significant upward trend. The average rent rose from $529 in 2013 to $897 in 2022, marking a 69.6% increase. This substantial rise in rent prices, despite a decreasing renter population, suggests a tightening rental market with potentially limited supply relative to demand.
In 2023, the average home price in Humboldt reached $118,570, showing a slight increase from the previous year. This upward trend continued into 2024, with average home prices rising to $119,481. Notably, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may influence future homeownership trends and housing affordability in the village.
Looking ahead, predictive models suggest that average home prices in Humboldt will continue to rise over the next five years, albeit at a more moderate pace. We can expect average home prices to potentially reach around $125,000 by 2029. Average rent prices are also projected to increase, potentially surpassing $1,000 per month within the next five years if current trends persist.
In summary, Humboldt has experienced a significant shift towards homeownership over the past decade, accompanied by rising average home and rent prices. The interplay between federal interest rates, homeownership rates, and housing costs has been evident, with low interest rates correlating with increased homeownership. As interest rates have begun to rise, it will be crucial to monitor how this affects the housing market dynamics in this small Illinois community.
