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Zip Code 42086: Stable Home Values and High Ownership Rates in Joppa, Illinois
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
Zip code 42086, encompassing Joppa in Illinois, presents an intriguing case study of homeownership and rental dynamics in a small rural community. This area has experienced fluctuations in ownership percentages and average rent prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 42086 has shown resilience, hovering around 80% throughout most of the observed period. In 2013, the ownership rate stood at a high of 87%, gradually decreasing to 78% by 2019. However, there was a notable recovery in recent years, with ownership rates climbing back to 84% in 2022. This trend suggests a strong preference for homeownership in the area, despite some short-term fluctuations.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 42086. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. This coincided with relatively high homeownership rates in the area, peaking at 87% in 2013. As interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, there was a corresponding dip in homeownership to 78%. However, the sharp drop in interest rates to 0.08% in 2021 likely contributed to the rebound in homeownership to 84% by 2022.
Rental trends in zip code 42086 have shown considerable volatility. The percentage of renters fluctuated between 13% and 22% from 2013 to 2022. Average rent prices exhibited significant variations, ranging from a low of $462 in 2015 to a high of $1,109 in 2019. The most recent data from 2022 shows an average rent of $831, indicating a moderate increase from the previous year. These fluctuations in rent prices and renter percentages suggest a dynamic rental market, possibly influenced by changes in local economic conditions and housing supply.
In 2023 and 2024, the housing market in zip code 42086 faced new challenges. Federal interest rates rose sharply to 5.02% in 2023 and further to 5.33% in 2024, marking a significant increase from the near-zero rates of the early 2020s. This substantial rise in interest rates likely impacted homebuying affordability and may have influenced both home prices and ownership rates in the area.
Looking ahead, predictive models suggest a potential stabilization in both home prices and rent rates for zip code 42086 over the next five years. Average home prices are projected to experience modest growth, potentially increasing by 2-3% annually, assuming economic conditions remain stable. Rent prices are expected to follow a similar trajectory, with annual increases of 1-2%, reflecting the area's steady population and balanced housing market.
In summary, zip code 42086 demonstrates a strong preference for homeownership, with rates consistently above 75% despite fluctuations in interest rates and economic conditions. The rental market, while smaller, shows significant price volatility, reflecting local market dynamics. The recent sharp increase in interest rates presents a new challenge for potential homebuyers, which may influence future homeownership trends in the area. Overall, the housing market in this zip code appears resilient, with expectations of modest growth in both home values and rental rates in the coming years.
