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Rising Home Values and Ownership Trends in Zip Code 61101: Rockford's Resilient Housing Market
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 61101, located in Rockford, Illinois, encompasses an urban area of 42.18 square miles. This region has witnessed significant changes in its housing market over the past decade, characterized by relatively stable homeownership rates and notable increases in average home values. The interplay between these factors provides insight into the area's real estate dynamics and economic trends. From 2013 to 2022, homeownership rates in zip code 61101 showed minor fluctuations, ultimately resulting in a slight increase. In 2013, the area had an equal distribution of owners and renters at 50% each. By 2022, homeownership had marginally increased to 52%. This modest growth in homeownership coincided with a substantial rise in average home prices. The average home price in 2013 was $29,448, which dramatically increased to $65,597 by 2022, representing a remarkable 122.8% increase over this period.
The influence of federal interest rates on homeownership in zip code 61101 is noteworthy. Between 2013 and 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership remained constant at 50%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight uptick in homeownership, reaching 52% by 2019. This trend suggests that residents may have been motivated to purchase homes before interest rates climbed further.
The rental market in zip code 61101 has experienced subtle changes over the same period. Renter percentages decreased slightly from 50% in 2013 to 48% in 2022. Concurrently, average rent prices saw a modest increase from $809 in 2013 to $832 in 2022, a 2.8% rise. It's important to note that the population decreased from 24,081 in 2013 to 21,522 in 2022, which may have influenced the rental market dynamics. In recent years, average home prices in zip code 61101 have continued their upward trajectory. The average home price reached $73,343 in 2023 and further increased to $86,140 in 2024, representing a substantial 17.4% year-over-year growth. This sharp increase occurred despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to dampen housing demand.
Based on observed trends, predictions for zip code 61101 suggest that average home prices will likely continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices may also see moderate increases, especially if the area experiences population growth or economic development. However, the rate of increase for both home prices and rents may be tempered by broader economic factors and local market conditions.
In conclusion, zip code 61101 has experienced a slight increase in homeownership rates over the past decade, accompanied by substantial growth in average home prices. Despite rising interest rates, the housing market has shown resilience, with significant price appreciation continuing into 2024. The rental market has remained relatively stable, with modest increases in average rent. These trends indicate a dynamic real estate market in this Rockford zip code, with potential for continued growth in both the ownership and rental sectors.
