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Zip Code 61705: Bloomington's Shifting Housing Landscape - Average Home Values Reach $357,491 in 2024
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 61705, located in Bloomington, Illinois, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 61705 has shown a gradual decline over the years. In 2013, 81% of residents were homeowners, but by 2022, this figure had decreased to 72%. Conversely, the percentage of renters increased from 19% in 2013 to 28% in 2022. During this same period, average home prices in the area experienced significant growth. In 2013, the average home price was $240,021, and by 2022, it had risen to $336,820, representing a 40.3% increase over nine years.
The relationship between federal interest rates and homeownership rates in zip code 61705 aligns with well-established economic trends. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), homeownership rates remained stable at around 81-82%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 72%. This trend suggests that higher interest rates may have contributed to the decrease in homeownership, possibly by making mortgages less affordable for potential buyers.
Renter percentages and average rent prices in zip code 61705 have shown an interesting correlation. As the renter population increased from 19% in 2013 to 28% in 2022, average rent prices also rose. In 2013, the average rent was $1,001, and by 2022, it had increased to $1,225, a 22.4% rise. This increase in rent prices could be attributed to higher demand for rental properties as more residents opted to rent rather than buy homes.
In 2023 and 2024, the housing market in zip code 61705 continued to evolve. The average home price reached $349,161 in 2023 and further increased to $357,491 in 2024, showing a continued upward trend. Simultaneously, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, predictive models suggest that average home prices in zip code 61705 may continue to rise over the next five years, albeit at a slower pace due to higher interest rates. Average rent prices are also expected to increase moderately, driven by ongoing demand for rental properties. However, if interest rates remain high, it could lead to a stabilization or slight decrease in home prices as fewer buyers enter the market.
In summary, zip code 61705 has experienced a shift towards renting, with homeownership rates declining from 81% to 72% between 2013 and 2022. Despite this trend, average home prices have increased significantly, rising by 40.3% during the same period. The rental market has also seen growth, with average rent prices increasing by 22.4%. These trends, coupled with rising interest rates, suggest a dynamic housing market that continues to evolve in response to economic factors and changing resident preferences.
