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Zip Code 61281: Rising Home Values and Stable Ownership in Sherrard, 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 61281, located in Sherrard, Illinois, presents an interesting case study of homeownership and housing market trends. This rural area has maintained a consistently high rate of homeownership over the past decade, with average home prices showing a steady upward trajectory. The ownership percentage in zip code 61281 has remained remarkably stable, hovering around 90% throughout the observed period. In 2013, the homeownership rate was 92%, and by 2022, it stood at 92% as well. During this time, average home prices experienced significant growth. In 2012, the average home price was $130,249, and by 2022, it had risen to $216,895, representing a 66.5% increase over a decade. This trend suggests a strong correlation between stable homeownership rates and rising property values in the area.
Federal interest rates have played a role in supporting homeownership in this zip code. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period coincided with the area's consistently high homeownership rates, as lower interest rates typically make mortgages more affordable. Even as interest rates began to rise in 2022 to 1.68%, the homeownership rate in the zip code remained steady at 92%, indicating a resilient local housing market.
Renter percentages in zip code 61281 have remained low, complementing the high homeownership rates. In 2013, renters made up 8% of the population, and this figure stood at 8% again in 2022. Despite the low percentage of renters, average rent prices have shown some fluctuation. In 2013, the average rent was $750, rising to $821 in 2018, before decreasing to $766 in 2022. The limited rental market in the area may contribute to these variations, as small changes in available units can have a more pronounced effect on average prices.
Looking at the most recent data, average home prices in zip code 61281 continued to rise, reaching $225,953 in 2023 and further increasing to $237,187 in 2024. This represents a 9.4% increase from 2022 to 2024. Concurrently, federal interest rates have significantly increased, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the local housing market appears to have maintained its strength, with home prices continuing to appreciate.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 61281 will continue to rise, albeit potentially at a more moderate pace due to the higher interest rate environment. Based on historical data and current trends, we project average home prices could reach approximately $275,000 to $290,000 by 2029. Average rent prices are expected to show modest increases, potentially reaching around $850 to $900 per month in the same timeframe, assuming the rental market remains limited in this predominantly owner-occupied area.
In summary, zip code 61281 demonstrates a robust and stable housing market characterized by high homeownership rates and steadily increasing property values. The area has shown resilience in maintaining its homeownership levels despite recent interest rate hikes, and the continued appreciation of home prices suggests ongoing demand for properties in this rural Illinois community. The limited rental market appears to have minimal impact on the overall housing trends, with the focus remaining firmly on homeownership.
