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Zeigler, Illinois: Home Values and Ownership Trends in a Volatile Market
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
Zeigler, a small city in Illinois, has experienced notable shifts in its housing market and demographic composition over the past decade. This analysis examines the trends in homeownership, average home prices, and average rent prices in Zeigler, providing insights into the city's real estate dynamics.
Homeownership in Zeigler has shown a general decline from 2013 to 2021, with a slight recovery in 2022. In 2013, the homeownership rate stood at 83%, but by 2021, it had decreased to 74%. However, 2022 saw a modest increase to 77%. This trend coincides with fluctuations in average home prices. From 2015 to 2017, average home prices in Zeigler decreased from $44,492 to $37,835. Subsequently, there was a significant uptick, with prices reaching $51,731 in 2020, representing a 36.7% increase from 2017.
The relationship between federal interest rates and homeownership rates in Zeigler follows a generally expected pattern. As interest rates remained low from 2013 to 2016, hovering around 0.1% to 0.4%, homeownership rates in Zeigler remained stable at 83%. However, as interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, homeownership rates in Zeigler started to decline, dropping to 75% by 2019. This trend suggests that rising interest rates may have contributed to decreased affordability and, consequently, lower homeownership rates.
Renter percentages in Zeigler have shown an inverse relationship to homeownership rates, increasing from 16% in 2013 to 26% in 2021, before slightly decreasing to 23% in 2022. Average rent prices have fluctuated over this period, with a peak of $623 in 2014 and a low of $514 in 2021. Interestingly, the highest average rent coincided with one of the highest population figures (2,772 in 2014), suggesting a potential correlation between population growth and rental demand.
In 2023, the average home price in Zeigler rose to $52,160, marking a 10.2% increase from 2022. This increase occurred despite a significant rise in federal interest rates to 5.02% in 2023. Moving into 2024, we see a slight decrease in average home prices to $47,270, while federal interest rates have further increased to 5.33%. This recent trend suggests a potential cooling of the housing market in response to higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Zeigler may continue to fluctuate but with a general upward trend over the next five years. Average rent prices are expected to stabilize and potentially increase moderately, reflecting the ongoing demand for rental properties in the city.
In summary, Zeigler's housing market has demonstrated resilience and adaptability over the past decade. The city has experienced shifts in homeownership rates, influenced by both local economic factors and broader interest rate trends. The recent increase in average home prices, despite rising interest rates, indicates a robust demand for housing in Zeigler. However, the slight decrease in 2024 suggests a potential market adjustment. As the city continues to evolve, these housing trends will play a crucial role in shaping its future development and community composition.
