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Rising Home Values and Shifting Ownership in Payson, Illinois: A Decade of Housing Market 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
Payson, located in Illinois, is a small community that has experienced fluctuations in its population and housing market over the past decade. The ownership percentage has shown a slight downward trend, while average home prices and average rent prices have generally increased.
The homeownership rate in Payson has seen a gradual decline from 2013 to 2022. In 2013, the ownership rate was 88%, which decreased to 84% by 2022. During this same period, average home prices showed a consistent upward trend. In 2014, the average home price was $97,973, which increased to $143,960 by 2022, representing a 46.9% increase over eight years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made it more challenging for some residents to enter the housing market.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained relatively low, ranging from 0.11% to 0.40%, which coincided with higher homeownership rates of 84-88%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate slightly decreased to 83-85%. The brief period of very low interest rates in 2020-2021 (0.38% and 0.08%) corresponded with a slight increase in homeownership to 85% in 2019, before declining again to 84% in 2022 as rates started to rise.
The percentage of renters in Payson has generally increased from 12% in 2013 to 16% in 2022, with some fluctuations in between. Average rent prices have also shown an overall upward trend. In 2013, the average rent was $600, which increased to $783 by 2022, representing a 30.5% increase. The population of Payson has fluctuated over this period, reaching a peak of 1,387 in 2014, 2018, and 2021, which may have contributed to increased demand for rental properties and subsequently higher rent prices.
In 2023 and 2024, average home prices in Payson continued to rise. The average home price reached $153,943 in 2023 and further increased to $156,223 in 2024, representing a 7% and 8.5% increase from 2022, respectively. This growth occurred despite significantly higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen since 2007.
Looking ahead, based on the observed trends, it's projected that average home prices in Payson will continue to increase over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $170,000 to $180,000 by 2029. Average rent prices are also expected to rise, potentially reaching $900 to $950 per month in the same timeframe, assuming continued demand for rental properties and overall economic growth.
In summary, Payson has experienced a gradual shift towards more renters and fewer homeowners over the past decade, coinciding with rising home prices and rent costs. The recent spike in interest rates has not yet significantly impacted home price growth, but may influence future trends in homeownership and property values. The community's housing market appears resilient, with continued growth expected in both home values and rental rates in the coming years.
