Loading Content...
Rising Home Values and Ownership Trends in Chester, Illinois: Popeye's Hometown Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Chester, Illinois: A Small Urban Area with Fluctuating Home Values and Strong Ownership Rates Chester, located in Illinois, is a small urban area with a rich history along the Mississippi River. Known for its role in the Popeye cartoon franchise, Chester has experienced significant shifts in its housing market over the past decade. The city has maintained a predominantly owner-occupied housing landscape, with homeownership rates consistently above 70%. However, average home prices and average rent prices have shown notable fluctuations, reflecting broader economic trends and local market dynamics.
The relationship between homeownership rates and average home prices in Chester reveals interesting patterns. In 2013, the homeownership rate stood at 71% with an average home price of $73,357. As average home prices declined to a low of $42,942 in 2017, the homeownership rate increased slightly to 72%. This inverse relationship suggests that lower home prices may have made homeownership more accessible. By 2022, the homeownership rate reached 75%, coinciding with a recovery in average home prices to $78,146, indicating a resilient local housing market.
Federal interest rates have played a crucial role in shaping homeownership trends in Chester. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates in Chester remained stable around 71-72%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, Chester's homeownership rate actually increased to 75%. This suggests that local factors may have outweighed the impact of rising interest rates on homeownership decisions in the city.
Renter percentages and average rent prices in Chester have shown some correlation. In 2013, with 29% of the population renting, the average rent was $728. As the renter percentage decreased slightly to 27% in 2015, the average rent increased marginally to $731. However, a notable shift occurred in 2017 when the renter percentage remained at 28%, but the average rent dropped significantly to $530. This was followed by a sharp increase in average rent to $792 in 2018, despite a slight decrease in the renter percentage to 27%. By 2022, with renters making up 25% of the population, the average rent stood at $807, indicating a general upward trend in rental costs despite fluctuations in the renter population.
Looking at the most recent data, 2023 saw a substantial increase in average home prices in Chester, reaching $88,035. This upward trend continued into 2024, with average home prices climbing to $97,553. Concurrently, federal interest rates rose significantly, hitting 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with rising home prices, may present challenges for potential homebuyers in the near future.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Chester will continue to rise, potentially reaching around $120,000 by 2029. This projection is based on the consistent upward trajectory observed since 2017. Average rent prices are also expected to increase, potentially surpassing $900 per month within the next five years, following the general upward trend seen in recent years.
In summary, Chester has demonstrated resilience in its housing market, with a strong preference for homeownership despite fluctuations in home prices and interest rates. The recent sharp increases in both home prices and interest rates signal a changing landscape that may impact affordability and homeownership rates in the coming years. The rental market has shown volatility but maintains an overall upward trend in prices. These dynamics suggest a housing market in transition, likely influenced by both local factors and broader economic conditions.
