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Rising Home Values and Ownership Trends in Zip Code 62807: Alma's Shifting 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 62807, located in Alma, Illinois, has experienced significant shifts in population and housing dynamics over the past decade. This rural area has seen a general trend of decreasing population, with homeownership rates rising while rental occupancy has declined. The interplay between ownership percentages, average home prices, and average rent prices reveals an intriguing story of local real estate market evolution.
Homeownership rates in zip code 62807 have shown a remarkable increase from 82% in 2015 to 93% in 2022. This upward trend coincides with fluctuations in average home prices. Average home prices rose from $89,525 in 2021 to $95,880 in 2022, representing a 7.1% increase. This growth in homeownership occurred despite rising home prices, suggesting other factors may have influenced buyers' decisions.
The relationship between federal interest rates and homeownership rates in this area appears to follow the general trend of lower interest rates encouraging homeownership. As interest rates remained low from 2015 to 2020 (ranging from 0.13% to 0.38%), homeownership rates increased from 82% to 88%. However, even as interest rates began to rise in 2022 to 1.68%, homeownership in the area continued to climb to 93%, indicating that local factors may have a stronger influence on homeownership than national interest rates in this particular zip code.
Renter percentages in zip code 62807 have shown a consistent decline, dropping from 17% in 2015 to just 7% in 2022. This trend has occurred alongside fluctuations in average rent prices. Average rent peaked at $876 in 2014 before declining to $342 in 2021, then rising again to $587 in 2022. The sharp decrease in renters despite the recent increase in rent prices might be attributed to the area's declining population, which fell from 748 in 2015 to 717 in 2022, potentially reducing demand for rental properties.
Looking at the most recent data, average home prices in zip code 62807 continued to rise, reaching $103,276 in 2023 and $107,273 in 2024. This represents a 7.7% increase from 2022 to 2023 and a further 3.9% increase from 2023 to 2024. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 62807 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $120,000 to $125,000 by 2029. Average rent prices are expected to stabilize and potentially increase moderately, possibly reaching $650 to $700 per month by 2029, assuming the local economy remains stable and population trends do not dramatically shift.
In summary, zip code 62807 has experienced a significant increase in homeownership rates despite rising home prices and a declining population. The rental market has contracted, with fewer renters and fluctuating rent prices. The area has shown resilience in its housing market, with home prices continuing to appreciate even in the face of rising interest rates. Moving forward, we expect continued growth in home values and a potential stabilization of the rental market, though these trends may be moderated by broader economic factors and local demographic shifts.
