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Varna, Illinois: Rising Home Values and 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
Varna, Illinois, is a small community that has experienced notable changes in its housing market over the past decade. The village has seen fluctuations in homeownership rates, with a general trend towards more renters. Average home prices have shown steady growth, while average rent prices have varied over the years.
From 2013 to 2022, Varna saw a significant shift in homeownership rates. In 2013, 93% of residents were homeowners, but this percentage decreased to 79% by 2022. Conversely, the percentage of renters increased from 6% to 21% during the same period. This change coincided with a rise in average home prices. In 2012, the average home price was $122,109, and it increased to $175,441 by 2022, representing a 43.7% increase over a decade. The growing home prices may have contributed to the decline in homeownership rates, as purchasing a home became less affordable for some residents.
Federal interest rates have played a role in homeownership trends in Varna. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable, hovering around 90-93%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more rapidly, falling from 91% in 2017 to 79% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in Varna has grown substantially, from 6% in 2013 to 21% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2013, the average rent was $578, which peaked at $819 in 2015 before declining to $698 in 2022. The fluctuation in rent prices, coupled with the increasing renter population, suggests that factors beyond price alone, such as job market changes or shifting demographics, may be influencing the rise in rentership.
In 2023 and 2024, Varna continued to see growth in average home prices. The average home price reached $187,970 in 2023 and further increased to $193,640 in 2024. This represents a 10.3% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates in the village.
Looking ahead, based on the observed trends, we can predict that average home prices in Varna will continue to rise over the next five years, potentially reaching around $225,000 by 2029. However, the rate of increase may slow down due to the higher interest rates. Average rent prices are likely to stabilize and potentially increase moderately, possibly reaching $750-$800 per month by 2029, as the renter population continues to grow.
In summary, Varna has experienced a shift towards more renters and fewer homeowners over the past decade, coinciding with rising home prices and fluctuating rent prices. The recent spike in interest rates may further impact homeownership rates in the coming years. As the village continues to evolve, these housing market dynamics will play a crucial role in shaping its community composition and economic landscape.
