Zip Code 61020: Davis Junction's Rising Home Values and Ownership Rates Amid Interest Rate Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Davis Junction, located in zip code 61020 in Illinois, has experienced notable shifts in homeownership rates and housing prices over the past decade. This analysis explores the trends in ownership versus renting, and their relationship to average housing and rent prices in the area. The homeownership rate in Davis Junction has shown a steady increase from 2013 to 2022. In 2013, 85% of housing units were owner-occupied, and this figure rose to 89% by 2022. This trend coincided with fluctuations in average home prices. The average home price in 2013 was $148,342, and it experienced some volatility before reaching $227,461 in 2022, representing a significant increase of 53.3% over this period.
The relationship between federal interest rates and homeownership rates in Davis Junction is noteworthy. As interest rates remained low from 2013 to 2020 (ranging from 0.09% to 0.38%), homeownership rates gradually increased. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. The homeownership rate rose from 85% in 2013 to 88% in 2020, despite some fluctuations in average home prices during this period.
Conversely, the percentage of renters in Davis Junction decreased from 15% in 2013 to 11% in 2022. This decline in renters coincided with an overall increase in average rent prices. The average rent rose from $893 in 2013 to $924 in 2022, an increase of 3.5%. Interestingly, there were fluctuations in rent prices during this period, with the highest average rent of $994 recorded in 2018 when the renter percentage was 15%.
Looking at the most recent data, the average home price in Davis Junction continued to rise, reaching $232,373 in 2023 and $240,475 in 2024. This represents a further increase of 5.7% from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Davis Junction will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $275,000 to $290,000, assuming a conservative annual growth rate of 2.5% to 3.5%. Average rent prices are also expected to increase, potentially reaching $1,000 to $1,050 by 2029, based on historical trends and accounting for inflation.
In summary, Davis Junction has experienced a steady increase in homeownership rates from 2013 to 2022, coupled with significant growth in average home prices. The renter population has decreased during this period, while average rent prices have shown moderate growth. Recent increases in federal interest rates may influence future homeownership trends, potentially slowing the rate of increase in homeownership. However, both average home prices and rent prices are expected to continue their upward trajectory in the coming years, reflecting the area's growing desirability and economic factors.
