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Zip Code 61262: High Homeownership and Rising Home Values in Rural 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 61262, located in Ophiem, Illinois, is a predominantly rural area characterized by a strong preference for homeownership. Over the past decade, this community has experienced notable fluctuations in population, ownership rates, and housing prices, reflecting broader economic trends and local dynamics.
The ownership percentage in zip code 61262 has remained consistently high, averaging above 90% throughout the observed period. This strong preference for homeownership coincides with a general upward trend in average home prices. In 2010, the average home price was $147,413, which steadily increased to $235,375 by 2022, representing a substantial 59.7% growth over 12 years. The most significant annual increase occurred between 2020 and 2021, with average home prices jumping from $197,197 to $214,513, a 8.8% rise in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 61262. The period of historically low interest rates from 2010 to 2021, ranging from 0.08% to 0.40%, likely contributed to the sustained high homeownership rates. For instance, in 2015, when the interest rate was just 0.13%, the homeownership rate peaked at 96%. As interest rates began to rise more significantly in 2022 to 1.68%, there was a slight decrease in homeownership to 91%, suggesting a potential correlation between higher interest rates and reduced homeownership.
The rental market in zip code 61262, while small, has shown some interesting trends. The percentage of renters has fluctuated between 4% and 10% over the years. Average rent prices have been volatile, with significant increases and decreases. For example, average rent rose from $587 in 2013 to $975 in 2016, a 66% increase, before dropping to $666 in 2018. These fluctuations may be attributed to the limited rental inventory in a predominantly owner-occupied area, where small changes in available units can have outsized effects on average rents.
In 2023 and 2024, the housing market in zip code 61262 showed signs of stabilization. The average home price slightly decreased from $235,375 in 2022 to $231,704 in 2023, before marginally increasing to $232,455 in 2024. This pattern suggests a cooling of the rapid price growth seen in previous years. Notably, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may have contributed to the slowing of home price appreciation.
Looking ahead, predictive models suggest a moderate growth trajectory for both home prices and rents in zip code 61262 over the next five years. Average home prices are projected to increase by approximately 2-3% annually, potentially reaching around $260,000 by 2029. Average rents are expected to follow a similar pattern, with projected annual increases of 3-4%, potentially reaching $850-$900 per month by 2029. These projections assume relatively stable economic conditions and a gradual adjustment to higher interest rates.
In summary, zip code 61262 demonstrates a strong and persistent culture of homeownership, with average home prices showing significant appreciation over the past decade. The area has weathered various economic cycles, maintaining high ownership rates even as home prices and interest rates have fluctuated. The rental market, while small, has shown volatility, likely due to limited inventory. Recent data indicates a potential stabilization in the housing market, with more moderate growth expected in the coming years for both home prices and rents.
