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Tonica, Illinois: Rising Home Values Amidst Shifting Ownership Trends
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
Tonica, 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 a general trend of decreasing homeownership rates, while average home prices have steadily increased. Average rent prices have shown more variability, with periods of both increase and decrease.
The homeownership rate in Tonica has declined from 84% in 2013 to 79% in 2022, representing a 5 percentage point decrease over nine years. During this same period, average home prices have shown a consistent upward trend. In 2013, the average home price was $99,544, and by 2022, it had risen to $164,978, marking a significant 65.7% increase. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.4%. During this period, homeownership rates in Tonica decreased slightly from 84% to 77%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates continued to decline, reaching 69% in 2019. However, when interest rates dropped sharply in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates rebounded to 74% in 2020 and 78% in 2021, aligning with the general trend of lower interest rates encouraging homeownership.
The percentage of renters in Tonica increased from 16% in 2013 to 21% in 2022. Average rent prices have fluctuated during this period, with a general downward trend. In 2013, the average rent was $731, peaking at $738 in 2014, before declining to $675 in 2022. This represents a 7.7% decrease in average rent over the nine-year period. The increase in the renter population, despite decreasing rent prices, may indicate other factors influencing housing choices, such as job market changes or shifting demographics.
In 2023, the average home price in Tonica reached $167,136, showing a continued upward trend from previous years. The federal interest rate for 2023 was 5.02%, a significant increase from the previous year. Moving into 2024, the average home price has further increased to $174,301, while the federal interest rate has risen slightly to 5.33%. These figures indicate a continued appreciation in home values despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Tonica are likely to continue their upward trajectory over the next five years. Based on historical trends, we can expect average home prices to potentially reach around $200,000 by 2029. Average rent prices, which have been more volatile, may stabilize or show a modest increase, potentially reaching around $750 per month in the same timeframe.
In summary, Tonica has experienced a gradual shift from homeownership to renting, with rising home prices potentially contributing to this trend. The interplay between federal interest rates and homeownership rates has been evident, with lower rates generally corresponding to higher homeownership. Despite fluctuations in the rental market, the overall trend points towards increasing property values and a changing housing landscape in this small Illinois community.
