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Rising Home Values and Strong Ownership in Montrose, Illinois: A Decade of Housing Market Fluctuations
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
Montrose, Illinois, is a small community located in the heart of the Prairie State. With a population of 1,934 in 2022 and covering an area of just 0.64 square miles, this village offers a close-knit suburban atmosphere. Over the past decade, Montrose has experienced notable fluctuations in homeownership rates and property values, reflecting broader economic trends and local market dynamics.
The homeownership rate in Montrose has shown a generally upward trend from 2013 to 2022. In 2013, 82% of residents owned their homes, and this figure increased to 88% by 2022. This rise in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $81,849, which steadily climbed to $144,948 by 2022, representing a 77% increase over nine years.
The relationship between federal interest rates and homeownership rates in Montrose appears to follow expected patterns. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates generally increased. The village saw its homeownership rate rise from 82% in 2013 to 86% in 2020. This trend aligns with the principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Conversely, the percentage of renters in Montrose decreased from 18% in 2013 to 12% in 2022. Despite this decline in the renter population, average rent prices showed some volatility. In 2013, the average rent was $658, which dropped to $574 in 2015 before rising again to $664 in 2022. This fluctuation in rent prices, despite a decreasing renter population, could be attributed to various factors including changes in housing quality, local economic conditions, or shifts in the types of rental properties available.
Looking at the most recent data, the average home price in Montrose reached $151,496 in 2023 and further increased to $156,343 in 2024. This continued upward trend in home values occurs alongside a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying activity and potentially slow the rate of price appreciation.
Applying predictive models to forecast trends for the next five years, we anticipate that average home prices in Montrose will continue to rise, albeit at a potentially slower pace due to higher interest rates. Average rent prices are expected to maintain a modest upward trajectory, influenced by overall housing market conditions and local economic factors.
In summary, Montrose has experienced a notable increase in homeownership rates and average home prices over the past decade. The inverse relationship between homeownership and renting percentages reflects a strong preference for homeownership in this community. As interest rates rise and home prices continue to appreciate, it will be crucial to monitor how these factors affect affordability and housing market dynamics in this Illinois village.
