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Zip Code 61108: Rising Home Values and Shifting Ownership Trends in Rockford, 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 61108, located in Rockford, Illinois, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 61108 has shown a gradual decline from 2013 to 2022. In 2013, 66% of housing units were owner-occupied, while by 2022, this figure had decreased to 64%. During this same period, average home prices in the area experienced substantial growth. In 2013, the average home price was $78,744, which increased to $139,194 by 2022, representing a 76.8% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 61108. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, ranging from 66% to 68%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a slight decline, dropping to 64% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 61108 have shown a corresponding increase as homeownership rates declined. In 2013, 34% of housing units were renter-occupied, which increased to 36% by 2022. Average rent prices in the area have also seen an upward trend, rising from $1,012 in 2013 to $1,065 in 2022, an increase of 5.2% over nine years. The population of the zip code has remained relatively stable during this period, increasing slightly from 29,757 in 2013 to 29,580 in 2022, suggesting that changes in rental demand are more likely driven by shifts in homeownership accessibility rather than significant population growth.
Looking at more recent data, average home prices in zip code 61108 continued to rise in 2023 and 2024, reaching $146,673 and $160,069 respectively. This represents a 15% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may further impact homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 61108 will continue to rise, potentially reaching around $190,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the recent acceleration in price growth. Average rent prices are also expected to increase, potentially reaching approximately $1,200 per month by 2029, assuming a continuation of the gradual upward trend seen in recent years.
In summary, zip code 61108 has experienced a gradual shift towards renting, with homeownership rates declining slightly as average home prices have risen significantly. The interplay between federal interest rates, home prices, and rental rates has shaped the housing market dynamics in this area. As home prices continue to rise and interest rates remain elevated, the trend towards renting may persist, potentially leading to further increases in average rent prices.
