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Zip Code 61012: Rural Capron's Rising Home Values and Ownership Rates Defy Interest Rate 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
Zip code 61012, located in Capron, Illinois, has experienced notable shifts in homeownership rates and housing prices over the past decade. This rural area has seen a gradual increase in homeownership, coupled with significant changes in average home and rent prices.
The homeownership rate in zip code 61012 has shown a steady upward trend, increasing from 77% in 2016 to 83% in 2022. This rise in homeownership coincided with a substantial increase in average home prices, which grew from $132,110 in 2016 to $211,826 in 2022, representing a 60% increase over six years. The relationship between homeownership rates and average home prices appears to be positive, suggesting that despite rising prices, more residents were able to purchase homes.
Federal interest rates have played a significant role in homeownership trends. The period from 2016 to 2022 saw relatively low interest rates, ranging from 0.4% to 1.68%. These low rates likely contributed to the increased homeownership by making mortgages more affordable. For instance, the jump in homeownership from 81% in 2019 to 83% in 2020 coincided with a sharp drop in interest rates from 2.16% to 0.38%, potentially encouraging more buyers to enter the market.
The renter population in zip code 61012 has inversely mirrored the homeownership trend, decreasing from 23% in 2016 to 17% in 2022. Interestingly, average rent prices have shown volatility during this period. The average rent increased from $872 in 2016 to a peak of $1,058 in 2021, before dropping to $850 in 2022. This fluctuation in rent prices, coupled with the decreasing renter population, suggests a complex rental market possibly influenced by factors such as local economic conditions and housing supply.
In 2023 and 2024, the housing market in zip code 61012 continued to evolve. The average home price rose to $219,250 in 2023 and further increased to $233,799 in 2024, representing a steady upward trajectory. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 61012 will continue to rise over the next five years, potentially reaching around $275,000 by 2029. Rent prices are expected to stabilize and show moderate growth, potentially averaging around $1,100 per month by 2029. These projections assume a continuation of current economic trends and local market conditions.
In summary, zip code 61012 has experienced a notable increase in homeownership rates and average home prices over the past decade, despite rising interest rates in recent years. The rental market has shown more volatility, with fluctuating prices and a decreasing renter population. As the area continues to evolve, it will be crucial to monitor how these trends impact housing affordability and community demographics in the coming years.
