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Rising Home Values and Strong Ownership in Zip Code 62558: A Decade of Growth in Pawnee, Illinois
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 62558, located in Pawnee, Illinois, presents an interesting case study in homeownership and housing market dynamics. This area has maintained a consistently high rate of homeownership over the past decade, with average home prices showing a steady upward trend. The rental market, while smaller, has also experienced notable fluctuations in both occupancy rates and average rent prices.
The homeownership rate in zip code 62558 has remained relatively stable, hovering around 80-84% between 2013 and 2022. During this period, average home prices have shown consistent growth. In 2013, the average home price was $119,068, which increased to $148,304 by 2022, representing a 24.6% increase over nine years. This upward trend in home prices did not significantly impact homeownership rates, suggesting a resilient local housing market and continued affordability for residents.
Federal interest rates have played a role in supporting homeownership in the area. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates remained high at around 82-83%. Even as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates in zip code 62558 remained strong, only dipping slightly to 80% in 2017-2018 before rebounding to 82% in 2022. This resilience in homeownership rates despite rising interest rates indicates a strong local preference for homeownership and potentially favorable local economic conditions.
The rental market in zip code 62558, while smaller, has shown some interesting trends. The percentage of renters fluctuated between 16% and 20% from 2013 to 2022. Average rent prices have been volatile during this period. In 2013, the average rent was $811, which increased to $939 by 2021, representing a 15.8% increase. However, in 2022, average rent dropped to $786, a 16.3% decrease from the previous year. This volatility in rent prices could be attributed to changes in local economic conditions or shifts in housing supply and demand.
Looking at more recent data, the average home price in zip code 62558 continued its upward trajectory, reaching $159,911 in 2023 and $165,960 in 2024. This represents a 7.8% increase from 2022 to 2023 and a further 3.8% increase from 2023 to 2024. Notably, federal interest rates also saw a significant increase, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests ongoing demand in the local housing market.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 62558 to continue their upward trajectory, potentially reaching around $190,000 by 2029. This projection is based on the historical growth rate and assumes continued stability in local economic conditions. For rent prices, given their recent volatility, a more conservative estimate would suggest average rents could stabilize and potentially increase to around $850-$900 per month by 2029, assuming local economic conditions remain favorable and housing demand continues to grow.
In summary, zip code 62558 demonstrates a strong preference for homeownership, with average home prices showing consistent growth despite fluctuations in interest rates. The rental market, while smaller, has experienced more volatility in both occupancy rates and prices. The recent surge in home prices, even in the face of rising interest rates, indicates a robust local housing market. Moving forward, the area is likely to see continued growth in home values, while the rental market may stabilize and see moderate growth.
