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Roodhouse, Illinois: Declining Home Values Amidst Rising Homeownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Roodhouse, Illinois: A Small City with Shifting Housing Dynamics Roodhouse, a small city in Illinois, has experienced notable changes in its housing market over the past decade. From 2013 to 2022, the city saw an increase in homeownership rates from 74% to 80%, despite fluctuations in average home prices. This trend suggests a complex interplay between property values and homeownership accessibility in the local market.
The city's average home prices have shown a declining trend in recent years. In 2019, the average home price was $80,710, but by 2022, it had decreased to $74,552, representing a 7.6% decline. This downward trend continued into 2023 and 2024, with prices falling to $66,976 and $64,609, respectively. Interestingly, this decline in home prices occurred alongside a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024.
The relationship between federal interest rates and homeownership rates in Roodhouse appears to be significant. In 2013, when the homeownership rate was 74%, the federal interest rate was 0.11%. As interest rates remained low through 2020 (0.38%), homeownership increased to 77%. The continued low rates in 2021 (0.08%) corresponded with a further increase in homeownership to 81%. This trend aligns with the general expectation that lower interest rates encourage homeownership due to more affordable financing options.
Rental Market Trends in Roodhouse The rental market in Roodhouse has shown an inverse relationship to homeownership rates. Renter percentages declined from 26% in 2013 to 20% in 2022. However, average rent prices have experienced significant increases. In 2013, the average rent was $484, rising to $790 in 2022, a substantial 63.2% increase over nine years. This rise in rent prices occurred despite a decrease in the city's population from 1,838 in 2013 to 1,636 in 2022, suggesting that factors beyond population growth were influencing rental costs.
Future Housing Market Projections Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Roodhouse may continue to experience modest declines or stabilize, given the recent downward trend and higher interest rates. Rent prices, which have shown a general upward trajectory, are likely to continue rising, albeit potentially at a slower rate due to the city's declining population.
Conclusion In summary, Roodhouse has experienced increasing homeownership rates despite fluctuating home prices. The inverse relationship between homeownership and rental percentages, coupled with rising rent prices, suggests a shifting housing market dynamic. The recent decline in home prices, combined with rising interest rates, presents a unique situation that may influence future homeownership trends and housing affordability in the city. These trends highlight the complex nature of the local housing market and its responsiveness to broader economic factors.
