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Stable Homeownership and Modest Growth: Kinmundy's Housing Market Resilience
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
Kinmundy, located in Illinois, is a small urban community with a population that has fluctuated around 1,000 residents over the past decade. The city has maintained a high rate of homeownership, with a slight downward trend in recent years. Average home prices have shown modest growth, while average rent prices have experienced some volatility.
Homeownership in Kinmundy has remained relatively stable, with a slight decrease from 86% in 2017 to 80% in 2022. During this period, average home prices increased from $67,135 in 2021 to $68,605 in 2022, representing a modest growth of 2.2%. This trend suggests that despite the slight decrease in homeownership, the housing market in Kinmundy has remained relatively stable and affordable for many residents.
The relationship between federal interest rates and homeownership rates in Kinmundy follows the general trend observed nationally. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 0.4%, homeownership rates in the city stayed above 80%. However, as interest rates began to rise in 2022 to 1.68%, there was a slight decrease in homeownership to 80%, indicating that higher interest rates may have made it more challenging for some residents to purchase homes.
The percentage of renters in Kinmundy has increased slightly from 14% in 2017 to 20% in 2022. During this period, average rent prices fluctuated considerably. In 2017, the average rent was $693, which decreased to $496 in 2019, before rising again to $642 in 2022. This represents a 29.4% increase in average rent prices from 2019 to 2022. The increase in the renter population and rent prices may be attributed to factors such as changing demographics or economic conditions in the area.
In 2023, the average home price in Kinmundy rose to $74,157, representing an 8.1% increase from 2022. However, in 2024, there was a decrease to $67,218, a 9.4% drop from the previous year. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024. This higher interest rate environment may have contributed to the cooling of home prices in 2024.
Looking ahead, based on the recent trends and current economic conditions, we can project the following 5-year trends for Kinmundy: Average home prices are likely to stabilize or show modest growth, potentially reaching around $70,000-$75,000 by 2029. This projection takes into account the recent price fluctuations and the higher interest rate environment. Average rent prices may continue to increase gradually, potentially reaching $700-$750 per month by 2029. This projection is based on the upward trend observed in recent years and the increasing renter population.
In summary, Kinmundy has maintained a high rate of homeownership despite recent slight decreases. The housing market has shown resilience with modest price growth, while the rental market has experienced some volatility. The impact of rising interest rates is evident in both the homeownership rates and housing prices. Moving forward, the city is likely to see stable growth in both home prices and rent prices, with potential for increased rental demand.
