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Zip Code 61528 in Peoria: Rising Home Values and Stable Ownership Trends
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 61528, located in Peoria, Illinois, has experienced significant demographic and housing market changes over the past decade. This area has seen a notable increase in population and fluctuations in homeownership rates, average home prices, and average rent prices, reflecting the dynamic nature of its real estate market.
The ownership percentage in zip code 61528 has shown resilience over the years, with some fluctuations. In 2013, the homeownership rate was 80%, which decreased to 73% in 2016 before recovering to 81% by 2022. This trend correlates interestingly with the average home prices in the area. The average home price in 2013 was $243,979, which increased to $261,608 by 2016, coinciding with the dip in homeownership rates. As homeownership rates rebounded, average home prices continued to rise, reaching $318,362 in 2022, indicating a strong housing market despite the higher costs.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 61528. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. Despite these favorable borrowing conditions, homeownership rates initially declined, possibly due to rising home prices. However, as interest rates began to increase more substantially from 2017 onwards, reaching 1.68% in 2022, homeownership rates in the area actually improved. This suggests that other local economic factors or housing market conditions may have had a stronger influence on homeownership than interest rates alone.
Renter percentages in zip code 61528 have fluctuated inversely to homeownership rates, as expected. The renter-occupied percentage increased from 16% in 2013 to a peak of 23% in 2016, before declining to 19% in 2022. Average rent prices have generally trended upward during this period, rising from $875 in 2013 to $1,206 in 2022, representing a 37.8% increase. The population growth from 3,367 in 2013 to 4,552 in 2022 likely contributed to the upward pressure on rent prices, as demand for housing increased in the area.
In 2023 and 2024, the average home prices in zip code 61528 continued their upward trajectory, reaching $323,028 in 2023 and $331,096 in 2024. This represents a 4% increase from 2022 to 2024, indicating a sustained strong housing market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Looking ahead, based on the historical trends and current market conditions, we can forecast potential 5-year trends for average home and rent prices in zip code 61528. Average home prices are likely to continue their upward trend, potentially reaching around $370,000 to $390,000 by 2029, assuming a moderate annual growth rate of 2-3%. Average rent prices may also continue to rise, potentially reaching $1,400 to $1,500 per month by 2029, based on historical increases and population growth trends.
In summary, zip code 61528 has demonstrated a resilient housing market with increasing average home prices and a rebounding homeownership rate despite rising interest rates. The area has experienced significant population growth, which has likely contributed to rising average rent prices. The interplay between homeownership rates, housing prices, and federal interest rates in this zip code showcases the complex dynamics of local real estate markets and the importance of considering multiple factors when analyzing housing trends.
