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Rising Home Values and Shifting Ownership in Hamel, Illinois: A Decade of Housing Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hamel, located in Illinois, is a small community that has experienced fluctuating demographics and housing trends over the past decade. The village has seen varied homeownership rates, with average home prices steadily increasing and average rent prices showing a more volatile pattern.
The relationship between homeownership percentages and average home prices in Hamel presents an interesting dynamic. In 2013, the homeownership rate was 83%, with average home prices at $149,164. As average home prices increased to $169,034 by 2018, the homeownership rate decreased to 75%. This trend continued into 2022, where the homeownership rate was 78% with average home prices reaching $237,523. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in homeownership trends in Hamel. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 85%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates showed a slight decline, dropping to 80% in 2019. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages and average rent prices in Hamel have shown some correlation. In 2013, the renter percentage was 17% with an average rent of $683. By 2019, as the renter percentage increased to 20%, the average rent rose to $915. However, this relationship wasn't consistent throughout the period. For instance, in 2018, despite a higher renter percentage of 25%, the average rent was $882, lower than the subsequent year. The village's population fluctuations, ranging from 1,269 in 2016 to 949 in 2019, likely influenced these rental market dynamics.
In 2023, average home prices in Hamel reached $252,114, with federal interest rates at 5.02%. Moving into 2024, average home prices further increased to $261,419, while interest rates rose slightly to 5.33%. This continued upward trend in both home prices and interest rates suggests a potentially challenging environment for prospective homebuyers in the village.
Looking ahead, predictive models suggest that average home prices in Hamel may continue to rise over the next five years, potentially reaching around $300,000 by 2029 if current trends persist. Average rent prices, which have shown more volatility, are projected to stabilize and potentially increase moderately, possibly reaching $950-$1,000 per month in the same timeframe.
In summary, Hamel has experienced a gradual decrease in homeownership rates as average home prices have steadily increased. The rental market has shown more variability, with renter percentages and average rent prices not always moving in tandem. The recent rise in both home prices and interest rates suggests a shifting landscape for housing in the village, which may continue to impact homeownership and rental trends in the coming years.
