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Rising Home Values and Shifting Ownership in Zip Code 62613: Athens' Evolving 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 62613, located in Athens, Illinois, has experienced dynamic shifts in homeownership and housing market trends over the past decade. This area, covering 63.55 square miles, has seen fluctuations in population and housing preferences, with notable changes in average home prices and rental rates.
The homeownership rate in zip code 62613 has shown a gradual decline from 2013 to 2022. In 2013, 85% of residents owned their homes, while by 2022, this figure had decreased to 79%. Concurrently, average home prices have demonstrated an upward trend. From 2015 to 2022, average home prices increased from $154,063 to $188,776, representing a significant 22.5% rise over seven years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 83-85%. However, as interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), homeownership rates started to decline, reaching 80% by 2017. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 62613 has grown proportionally as homeownership has declined. The percentage of renters increased from 15% in 2013 to 21% in 2022. This shift coincided with a substantial increase in average rent prices. In 2013, the average rent was $590, which rose to $706 by 2022, marking a 19.7% increase. The peak average rent of $792 was observed in 2017, coinciding with the period when homeownership rates began to decline more rapidly. These trends suggest that as home prices increased and homeownership became less attainable, more residents turned to renting, driving up rental demand and prices.
In 2023 and 2024, the housing market in zip code 62613 has shown interesting developments. The average home price in 2023 was $184,385, slightly lower than the 2022 figure. However, in 2024, the average home price rebounded to $190,603, surpassing the 2022 level. This recent uptick occurs against the backdrop of significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Looking ahead, based on historical trends and current market conditions, we can project some potential scenarios for the next five years. Average home prices are likely to continue their overall upward trajectory, potentially reaching around $210,000 to $220,000 by 2029. This projection assumes a moderate annual growth rate of 2-3%, considering the recent price fluctuations and higher interest rates. Average rent prices may also continue to rise, potentially reaching $750 to $800 by 2029, assuming a similar growth rate to recent years.
In summary, zip code 62613 has experienced a gradual shift from homeownership to renting over the past decade, driven by rising home prices and changing economic conditions. The interplay between federal interest rates, home prices, and rental rates has significantly influenced housing market dynamics in the area. As we move forward, the community may continue to see a balance shift between owners and renters, with both home prices and rent likely to maintain their upward trends, albeit potentially at a more moderate pace due to current economic factors.
