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Zip Code 61273: Rising Home Values and High Ownership Rates in Orion, 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 61273, representing Orion in Illinois, presents an intriguing case study of homeownership and housing market dynamics. This rural area has experienced notable fluctuations in its ownership rates and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 61273 has shown resilience, maintaining a high level despite some variations. In 2013, the area boasted an impressive 89% homeownership rate. This figure remained relatively stable, with only minor fluctuations, until 2020 when it dipped to 82%. However, by 2022, homeownership rebounded strongly to 88%, indicating a robust preference for owning rather than renting in this community. Concurrently, average home prices in the area have shown a steady upward trajectory. From 2013 to 2022, average home prices increased from $130,893 to $187,400, representing a significant 43% growth over this period.
The relationship between federal interest rates and homeownership rates in zip code 61273 appears to follow expected patterns, albeit with some local nuances. As interest rates remained historically low from 2013 to 2016 (below 0.5%), homeownership rates in the area stayed consistently high, around 86-89%. The slight dip in homeownership to 82% in 2020 coincided with the onset of the COVID-19 pandemic, despite interest rates dropping to near-zero levels. This suggests that local economic factors may have temporarily outweighed the influence of low interest rates during this unusual period.
Renter percentages and average rent prices in zip code 61273 have shown interesting trends. The renter population has fluctuated between 11% and 18% from 2013 to 2022. Notably, average rent prices experienced significant volatility during this period. From 2013 to 2016, average rents decreased from $662 to $571. However, there was a dramatic increase in 2017, with average rents jumping to $999, followed by further increases to $1,049 by 2021. This substantial rise in rent prices, particularly from 2016 to 2017, occurred despite only a modest increase in the renter percentage from 13% to 14%, suggesting factors beyond simple supply and demand were at play in the local rental market.
In 2023 and 2024, the housing market in zip code 61273 continued its upward trajectory. Average home prices reached $192,367 in 2023 and further increased to $195,518 in 2024. This represents a 4.3% increase from 2022 to 2024, indicating continued growth in the local real estate market. Simultaneously, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 61273 are likely to continue their upward trend over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices, which have shown volatility in recent years, are projected to stabilize and potentially increase moderately, influenced by overall housing market conditions and local economic factors.
In summary, zip code 61273 demonstrates a strong preference for homeownership, with rates consistently above 80% despite fluctuations in the housing market. The area has experienced significant growth in average home prices, particularly since 2013, while the rental market has shown more volatility. The interplay between federal interest rates, local economic conditions, and housing preferences will continue to shape the real estate landscape in this Illinois community in the coming years.
