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Rising Home Values and Strong Ownership in Breese, Illinois: A Decade of Housing Market Evolution
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
Breese, located in Illinois, is a small but vibrant community that has experienced notable shifts in its housing landscape over the past decade. The city has maintained a strong preference for homeownership, with a generally high percentage of owner-occupied homes. Average home prices have shown a steady upward trend, while average rent prices have fluctuated more dramatically.
The homeownership rate in Breese has remained relatively stable, with a slight decline from 87% in 2016 to 80% in 2022. Despite this minor decrease, the average home prices have consistently increased. In 2010, the average home price was $159,900, and by 2022, it had risen to $221,484, representing a significant 38.5% increase over 12 years. This trend suggests that while fewer residents are becoming homeowners, those who do own homes are seeing their property values appreciate considerably.
Federal interest rates have played a role in homeownership trends. From 2010 to 2021, interest rates remained historically low, hovering between 0.08% and 0.4%. This period coincided with the city's highest homeownership rates, peaking at 87% in 2016. As interest rates began to rise in 2022 to 1.68%, we see a corresponding dip in homeownership to 80%, illustrating the inverse relationship between interest rates and homeownership.
The renter population in Breese has seen a gradual increase from 13% in 2016 to 20% in 2022. Interestingly, average rent prices have shown significant volatility. In 2013, the average rent was $3,815, which increased to $4,216 in 2015. However, there was a dramatic drop to $1,681 in 2016, followed by a recovery to $4,200 in 2018. The most recent data shows another substantial decrease to $817 in 2022. These fluctuations may be influenced by changes in housing supply, local economic factors, or shifts in the rental market composition.
In 2023, the average home price in Breese reached $225,922, continuing the upward trend. By 2024, it further increased to $234,912, demonstrating ongoing appreciation in the housing market. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability.
Looking ahead, predictive models suggest that average home prices in Breese are likely to continue their upward trajectory over the next five years, potentially reaching around $280,000 by 2029. Average rent prices, given their recent volatility, are more challenging to predict accurately. However, if the trend of increasing renter population continues, we might see a stabilization and gradual increase in average rents, potentially reaching $1,200-$1,500 per month in the next five years.
In summary, Breese's housing market is characterized by a strong preference for homeownership, steadily increasing average home prices, and volatile rent prices. The relationship between federal interest rates and homeownership rates is evident, with recent increases in interest rates coinciding with a slight decline in homeownership. As the city moves forward, it will be crucial to monitor how these trends evolve, particularly in light of the recent significant interest rate hikes and their potential impact on the housing market dynamics.
