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Rising Home Values and Ownership Rates in Zip Code 61773: Sibley's Rural Housing Trends
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 61773, located in Sibley, Illinois, has experienced notable shifts in population and housing dynamics over the past decade. This rural area, spanning 47.34 square miles, has seen a consistent trend of increasing homeownership rates alongside fluctuating average home and rent prices.
The ownership percentage in zip code 61773 has shown a steady upward trend, rising from 83% in 2013 to 88% in 2022. This increase in homeownership coincides with changes in average home prices, which have risen from $94,578 in 2021 to $94,590 in 2022, a modest 0.01% increase. The relationship between homeownership rates and average home prices suggests that despite the slight increase in home values, more residents are opting to purchase homes rather than rent.
Federal interest rates have played a significant role in homeownership trends in zip code 61773. As interest rates remained low between 2013 and 2021, ranging from 0.08% to 0.4%, homeownership rates increased from 83% to 90%. This aligns with the well-established trend that lower interest rates generally encourage homeownership due to more affordable financing options. However, as interest rates began to rise in 2022 to 1.68%, there was a slight dip in homeownership to 88%, indicating a potential correlation between higher interest rates and a slight decrease in homeownership.
The renter percentage in zip code 61773 has correspondingly decreased from 17% in 2013 to 12% in 2022. Average rent prices have shown a general downward trend during this period, decreasing from $817 in 2013 to $614 in 2022, a 24.8% reduction. This decline in both renter percentage and average rent prices could be attributed to the area's decreasing population, which fell from 414 in 2013 to 309 in 2022, potentially reducing demand for rental properties.
In 2023 and 2024, zip code 61773 experienced a significant uptick in average home prices. The average home price rose to $106,231 in 2023, a 12.3% increase from 2022, and further increased to $114,480 in 2024, representing a 7.8% year-over-year growth. This surge in home prices occurred despite the Federal Reserve raising interest rates to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to cool the housing market.
Looking ahead, predictive models suggest that average home prices in zip code 61773 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices, which have been declining, may stabilize or see modest increases as the rental market adjusts to the shrinking renter population and potentially higher demand from those priced out of homeownership.
In summary, zip code 61773 has demonstrated a clear trend towards increased homeownership, with a concurrent decrease in the renter population. Despite recent increases in federal interest rates, average home prices have shown resilience and growth. The area's declining population has likely influenced both the rental market and overall housing dynamics. As the community continues to evolve, these trends suggest a shifting landscape in local real estate, with a potential for continued growth in home values and a recalibration of the rental market.
