Loading Content...
Zip Code 61231: Rising Home Values and Shifting Ownership Trends in Aledo, Illinois
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 61231, located in Aledo, Illinois, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, covering 155.42 square miles, has seen fluctuations in its population and housing market dynamics, reflecting broader economic trends and local factors.
The homeownership rate in zip code 61231 has shown a gradual decline from 2013 to 2022. In 2013, 70% of housing units were owner-occupied, but by 2022, this figure had decreased to 67%. Conversely, the percentage of renters increased from 30% to 33% during the same period. Despite this shift towards renting, average home prices in the area have generally trended upward. In 2012, the average home price was $109,008, and by 2022, it had risen to $150,666, representing a significant increase of about 38% over a decade.
The relationship between federal interest rates and homeownership rates in this zip code follows a generally inverse pattern. For instance, when interest rates were at historic lows between 2012 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable at around 72-73%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 67%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Regarding rental trends, the percentage of renters increased from 27% in 2014 to 33% in 2022. Interestingly, average rent prices have shown volatility during this period. In 2013, the average rent was $728, which dropped to $588 in 2016 before rising again to $689 in 2022. This fluctuation in rent prices, coupled with the increasing renter population, suggests a complex interplay of factors affecting the rental market in this area.
Looking at more recent data, the average home price in zip code 61231 continued to rise in 2023, reaching $150,792. However, in 2024, there was a slight decrease to $150,148. This recent trend coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to the stabilization of home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 61231 may continue to experience moderate growth, albeit at a slower pace than in previous years due to higher interest rates. The average rent prices are likely to show a gradual increase, reflecting the growing demand for rental properties in the area.
In summary, zip code 61231 has witnessed a shift towards renting, with homeownership rates declining from 70% to 67% between 2013 and 2022. Despite this trend, average home prices have shown substantial growth, increasing by 38% from 2012 to 2022. The rental market has experienced fluctuations in prices, while the proportion of renters has steadily increased. Recent data from 2023 and 2024 suggests a potential stabilization in home prices, likely influenced by rising interest rates. These trends reflect the dynamic nature of the housing market in this Illinois zip code, balancing local factors with broader economic influences.
