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Rural Illinois Zip Code 62424: Home Values and Ownership Trends in Dieterich
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 62424, encompassing Dieterich in Illinois, presents an intriguing case study of housing trends in a rural American setting. This area has experienced notable fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic shifts and local demographic changes.
The homeownership rate in zip code 62424 has shown a gradual decline from 2013 to 2022, with some fluctuations. In 2013, the area boasted a high 88% homeownership rate. This figure peaked at 93% in 2015 before beginning a downward trend, reaching 85% by 2022. Concurrently, average home prices have demonstrated a steady upward trajectory. In 2013, the average home price was $131,369, which increased to $203,906 by 2022, representing a significant 55% growth over this period.
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, hovering around 0.1% to 0.4%. This coincided with the highest homeownership rates in zip code 62424, peaking at 93% in 2015. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, we observe a corresponding decline in homeownership rates, dropping to 85% in the same year.
The rental market in zip code 62424 has shown inverse trends to homeownership. The percentage of renters increased from 12% in 2013 to 15% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2013, the average rent was $753, which peaked at $903 in 2014 before declining to $608 in 2022. This decrease in average rent prices, despite an increase in the renter population, could be attributed to various factors including changes in housing stock or local economic conditions.
In 2023 and 2024, we see a continuation of the upward trend in average home prices, reaching $211,924 in 2023 and further increasing to $216,496 in 2024. This represents a 6.2% increase from 2022 to 2024. Notably, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics in the area.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 62424 may continue their upward trajectory, potentially reaching around $250,000 by 2029. However, this growth rate might moderate due to higher interest rates. Average rent prices, which have shown volatility, could stabilize or see modest increases, potentially reaching $650-$700 by 2029. These projections assume relatively stable economic conditions and no major disruptive events.
In summary, zip code 62424 has experienced a gradual shift from a predominantly homeowner market to one with a slightly increased renter presence. Despite this shift, average home prices have consistently risen, reflecting strong demand in the area. The interplay between federal interest rates, homeownership rates, and housing prices demonstrates the complex dynamics of the local real estate market. As the area continues to evolve, these trends will likely shape the future of housing in this Illinois community.
