Loading Content...
Zip Code 61279: Rising Home Values and Ownership Rates in Buffalo Prairie, 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
Buffalo Prairie, located in zip code 61279 in Illinois, is a small community that has experienced notable shifts in homeownership rates and housing prices over the past decade. This analysis explores the trends in ownership percentages, average home prices, and average rent prices, providing insights into the local real estate market dynamics. The homeownership rate in Buffalo Prairie has shown an overall increasing trend from 2013 to 2022. In 2013, the owner-occupied housing rate was 80%, which fluctuated slightly over the years before reaching 84% in 2022. This increase in homeownership coincides with a steady rise in average home prices. From 2014 to 2022, average home prices in the area grew from $144,637 to $185,377, representing a significant 28.2% increase over eight years. The relationship between federal interest rates and homeownership rates in Buffalo Prairie presents an interesting dynamic. Despite the general economic principle that lower interest rates encourage homeownership, this area showed increased homeownership even as interest rates rose. For instance, from 2016 to 2018, when federal interest rates increased from 0.4% to 1.83%, the homeownership rate in the CDP actually rose from 77% to 80%. This suggests that local factors may have played a more significant role in driving homeownership than national interest rate trends.
Renter percentages in Buffalo Prairie have shown an inverse relationship to homeownership rates, naturally decreasing as ownership increased. The renter-occupied housing rate peaked at 25% in 2017 and has since declined to 16% in 2022. Interestingly, average rent prices have not followed a consistent pattern with renter percentages. Average rent reached its highest point of $1,264 in 2014 when the renter percentage was 19%, then declined to $1,053 in 2022 despite the lower renter percentage of 16%. This suggests that factors beyond supply and demand, such as local economic conditions or housing policies, may be influencing rent prices.
In 2023 and 2024, average home prices in Buffalo Prairie showed a slight fluctuation. The average home price in 2023 was $183,969, a minor decrease from 2022. However, in 2024, the price rebounded slightly to $185,670. This modest increase occurred despite the federal interest rate rising to 5.33% in 2024, indicating resilience in the local housing market.
Looking ahead, predictive models suggest a continued but moderate increase in average home prices over the next five years. Based on historical trends, average home prices could potentially reach around $195,000 to $200,000 by 2029. Average rent prices, which have been more volatile, are harder to predict accurately. However, if the current trend continues, they may stabilize around $1,100 to $1,200 per month.
In summary, Buffalo Prairie has experienced a strengthening homeownership market over the past decade, with increasing ownership rates and rising home values. The area has shown resilience to national economic factors like interest rate changes, suggesting strong local market fundamentals. While the rental market has seen some fluctuations, the overall trend points towards a community increasingly dominated by homeowners. These trends, if continued, could shape the character and economic stability of the CDP in the coming years.
