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Zip Code 61259: Rising Home Values and Strong Ownership in Buffalo Prairie, 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 61259, located in Buffalo Prairie, Illinois, presents an interesting case study of homeownership and rental trends over the past decade. This rural area has experienced significant fluctuations in its housing market, with a notable shift towards increased homeownership in recent years.
The ownership percentage in this zip code has shown a strong upward trend, rising from 78% in 2013 to 89% in 2022. This increase in homeownership coincides with a general upward trajectory in average home prices. In 2017, the average home price was $207,175, which steadily increased to $247,651 by 2022, representing a 19.5% increase over five years.
The relationship between federal interest rates and homeownership rates in this area appears to follow the expected pattern. As interest rates remained low between 2013 and 2021 (ranging from 0.08% to 2.16%), homeownership rates increased from 78% to 89%. This trend aligns with the general understanding that lower interest rates make homeownership more accessible due to reduced borrowing costs.
Conversely, the percentage of renters in zip code 61259 has decreased significantly, from 22% in 2013 to 11% in 2022. Despite this decrease in the renter population, average rent prices have shown volatility. The average rent increased from $724 in 2013 to $859 in 2016, then fluctuated before reaching $1,114 in 2021, only to drop to $741 in 2022. This volatility in rent prices, despite a decreasing renter population, suggests that other factors, such as local economic conditions or housing supply, may be influencing rental costs.
Looking at the most recent data, the average home price in zip code 61259 continued to rise in 2023, reaching $250,272. In 2024, it further increased to $263,580, representing a 5.3% year-over-year growth. This growth occurred despite the federal interest rate rising to 5.33% in 2024, which typically would be expected to slow down housing price increases.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 61259 will continue to rise, albeit at a potentially slower rate due to higher interest rates. The average home price could reach approximately $290,000 by 2029. Rent prices, given their historical volatility, are more challenging to predict accurately. However, if the trend of decreasing renter population continues, we might see stabilization or modest increases in rent prices, potentially reaching an average of around $800-$850 per month by 2029.
In summary, zip code 61259 has experienced a significant shift towards homeownership, with 89% of residents owning their homes as of 2022. This trend has been accompanied by steady increases in average home prices, which have continued into 2024 despite rising interest rates. The rental market, while shrinking in terms of population, has shown considerable price volatility. These trends suggest a strong preference for homeownership in this area, possibly driven by factors such as local economic conditions, demographic shifts, or the relative affordability of homes compared to renting.
