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Sheldon, Illinois: Affordable Home Values and Ownership Trends Amid Interest Rate Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Sheldon, located in Illinois, is a small community that has experienced fluctuations in its population and housing market over the past decade. The village has seen notable shifts in homeownership rates and rental trends, alongside changes in average home and rent prices. Homeownership in Sheldon has shown a general upward trend from 2013 to 2019, with the percentage of owner-occupied homes rising from 69% to 84%. This increase coincided with relatively stable average home prices, although specific figures for earlier years are not available. In 2022, the average home price was $66,879, indicating an affordable housing market compared to many other areas. The trend of increasing homeownership rates reversed slightly in recent years, dropping to 68% in 2022. Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.4%), homeownership in Sheldon increased. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. As interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, we see a corresponding decline in homeownership rates in the village.
Renter percentages in Sheldon have fluctuated inversely to homeownership rates. The proportion of renters decreased from 31% in 2013 to a low of 16% in 2019, before rising again to 32% in 2022. Average rent prices have shown some volatility, peaking at $730 in 2014 before declining to $638 in 2021, and then rising again to $695 in 2022. These fluctuations in rent prices and renter percentages may be influenced by changes in the village's population, which varied from a high of 1,728 in 2013 to 1,600 in 2022.
In 2023 and 2024, Sheldon's housing market showed interesting developments. The average home price increased slightly to $67,994 in 2023 before decreasing to $65,260 in 2024. This occurred against a backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may contribute to the slight decline in average home prices observed in 2024.
Looking ahead, predictive models suggest that average home prices in Sheldon may continue to experience moderate fluctuations over the next five years. Given the recent trend and current economic conditions, we might expect average home prices to remain relatively stable or potentially decrease slightly, hovering around the $65,000 to $70,000 range. Average rent prices are projected to follow a similar pattern, potentially fluctuating between $650 and $750 per month, influenced by local economic factors and housing demand.
In summary, Sheldon has experienced significant shifts in its housing market over the past decade. The community saw a notable increase in homeownership rates from 2013 to 2019, followed by a reversal of this trend in recent years. Average home prices have remained relatively affordable, while rent prices have fluctuated. The relationship between federal interest rates and homeownership trends is evident, with recent increases in interest rates coinciding with a decline in homeownership rates. As we move forward, the housing market in Sheldon is likely to continue evolving, influenced by both local and national economic factors.
