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Tamms: Rising Homeownership Amid Declining Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Tamms, located in Illinois, has experienced significant demographic shifts and housing market changes over the past decade. This small community has seen fluctuations in its population, homeownership rates, and housing prices, reflecting broader economic trends and local developments.
The homeownership rate in Tamms has shown a notable upward trend, increasing from 70% in 2013 to 85% in 2022. This rise in homeownership coincided with varying average home prices. The average home price in 2021 was $97,842, which decreased to $90,413 in 2022. This trend suggests that despite falling home prices, more residents were able to transition from renting to owning.
Federal interest rates play a crucial role in homeownership trends. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the increasing homeownership in Tamms, as they made mortgages more affordable for potential buyers. The sharp rise in homeownership from 76% in 2016 to 85% in 2017 coincides with interest rates still being relatively low at 1%, potentially spurring home purchases.
Conversely, the percentage of renters in Tamms has decreased from 30% in 2013 to 15% in 2022. This decline in renters corresponds with fluctuations in average rent prices. The average rent peaked at $485 in 2014 and then decreased to $315 in 2016 before rising again to $525 in 2022. The population decline from 1,233 in 2013 to 676 in 2022 may have influenced these rental market dynamics, potentially leading to reduced demand for rental properties and contributing to the shift towards homeownership.
In 2023 and 2024, we see a continuation of the declining trend in average home prices in Tamms. The average home price further decreased to $87,601 in 2023 and $86,048 in 2024. This occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates would typically be expected to cool the housing market, which aligns with the observed price decreases.
Looking ahead, predictive models suggest that average home prices in Tamms may continue to decline slightly over the next five years, potentially stabilizing around $85,000 by 2029. Average rent prices, however, are projected to increase moderately, possibly reaching around $600 by 2029, assuming the current economic conditions and population trends persist.
In summary, Tamms has experienced a substantial increase in homeownership rates despite fluctuating home prices. This trend has been influenced by historically low interest rates in the 2010s, which made homeownership more accessible. The rental market has seen a decrease in the proportion of renters, coupled with recent increases in average rent prices. The community's declining population has likely played a role in shaping these housing market dynamics. As we move forward, the interplay between interest rates, population changes, and economic factors will continue to shape the housing landscape in Tamms.
