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Rising Home Values and Shifting Ownership in Alton, Illinois: A Riverside City's 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
Alton, Illinois, a riverside city known for its rich history and scenic beauty along the Mississippi River, has experienced notable shifts in its housing market over the past decade. The city, with a population of 27,119 in 2022, has seen fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local dynamics.
The homeownership rate in Alton has remained relatively stable, with a slight downward trend observed in recent years. In 2013, 64% of residents were homeowners, which decreased to 61% by 2022. This shift coincides with interesting movements in average home prices. The average home price in Alton was $66,238 in 2010, dropping to a low of $56,825 in 2014 before rebounding and showing steady growth. By 2022, the average home price had risen to $86,492, representing a significant recovery and growth in the local real estate market.
Federal interest rates have played a crucial role in shaping homeownership trends in Alton. The period of historically low interest rates from 2010 to 2021, with rates often below 1%, likely contributed to the relative stability in homeownership rates despite fluctuating home prices. For instance, when interest rates were at 0.08% in 2021, Alton maintained a 63% homeownership rate, even as average home prices reached $84,533.
Renter percentages in Alton have shown a slight increase, moving from 36% in 2013 to 39% in 2022. This trend has been accompanied by changes in average rent prices. In 2013, the average rent was $792, which increased to $863 by 2021. However, 2022 saw a slight decrease to $807. The increase in the renter population, from about 10,400 renters in 2013 to approximately 10,576 in 2022, may have influenced these rent price fluctuations.
In 2023, Alton's housing market continued its upward trajectory, with average home prices reaching $90,768. This trend persisted into 2024, with prices further climbing to $92,937. These increases occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. This suggests a robust local housing market that has maintained growth even in the face of higher borrowing costs.
Looking ahead, predictive models suggest a continued upward trend in both home prices and rent in Alton over the next five years. Average home prices are projected to surpass the $100,000 mark by 2027, potentially reaching around $110,000 by 2029. Rent prices are expected to follow a similar trajectory, potentially increasing to approximately $900-$950 per month by 2029. However, these projections assume relatively stable economic conditions and should be considered with the understanding that various factors could influence actual outcomes.
In summary, Alton's housing market has demonstrated resilience and growth over the past decade. The slight decrease in homeownership has been offset by rising home values, while the rental market has seen moderate growth in both occupancy and prices. The city's ability to maintain price growth even during periods of higher interest rates suggests a strong local real estate market, potentially driven by factors such as local economic development or the city's attractive riverside location.
