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Zip Code 61232: Rising Home Values and High Ownership Rates in Andalusia, 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 61232, representing the village of Andalusia in Illinois, offers an intriguing snapshot of housing market dynamics in a small Midwestern community. This area has experienced significant fluctuations in homeownership rates and property values over the past decade, with a general trend towards increasing average home prices and a relatively stable, high rate of owner-occupied housing.
The ownership percentage in zip code 61232 has remained consistently high, ranging from 86% to 93% between 2013 and 2022. This high rate of homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $136,711, which rose to $190,186 by 2022, representing a 39% increase over this period. Notably, the sharpest increases occurred between 2019 and 2022, with average home prices jumping from $161,558 to $190,186, a 17.7% rise in just three years.
Federal interest rates have played a significant role in shaping homeownership trends in this zip code. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the high homeownership rates observed during this time, peaking at 93% in 2013 and 2014. As interest rates began to rise more significantly from 2017 onwards, reaching 2.16% in 2019, we see a slight decline in homeownership rates, dropping to 87% in 2019. However, the community maintained a strong preference for homeownership even as interest rates fluctuated.
Renter percentages in zip code 61232 have remained relatively low, fluctuating between 7% and 14% from 2013 to 2022. Despite this low percentage, average rent prices have shown a significant upward trend. In 2013, the average rent was $624, which increased to $937 by 2022, representing a 50% increase. Notably, there was a sharp rise in average rent from $639 in 2015 to $928 in 2016, a 45% increase in a single year. This substantial jump in rent prices occurred despite a decrease in population from 1,185 in 2015 to 960 in 2016, suggesting factors beyond population growth were influencing rental markets.
In 2023 and 2024, the housing market in zip code 61232 continued its upward trajectory. The average home price reached $193,472 in 2023 and further increased to $202,055 in 2024, representing a 4.4% year-over-year growth. This growth occurred despite significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in zip code 61232 will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. We might expect average home prices to reach around $220,000 to $230,000 by 2029. Average rent prices are also likely to continue their upward trend, potentially reaching $1,100 to $1,200 per month by 2029, assuming the current economic conditions and local market factors remain relatively stable.
In summary, zip code 61232 demonstrates a robust housing market characterized by high homeownership rates and steadily increasing property values. Despite fluctuations in federal interest rates and population, the area has maintained strong demand for owner-occupied housing. The significant increases in both home prices and rent suggest a growing desirability of the area, potentially driven by factors such as local economic development or regional migration patterns. As we move forward, the community of Andalusia, Illinois, appears poised for continued growth in its housing market, with both homeowners and renters likely to see increasing costs in the coming years.
