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Zip Code 61726: Rising Home Values and Strong Ownership in Rural 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 61726, encompassing Chenoa in Illinois, presents an intriguing case study of homeownership and housing market dynamics. This area has experienced fluctuations in ownership rates and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 61726 has shown resilience, ranging from 74% to 81% between 2013 and 2022. This high rate of homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $95,570, which grew consistently to reach $127,946 by 2022, representing a 33.9% increase over this period. Notably, the ownership rate peaked at 81% in both 2014 and 2022, coinciding with average home prices of $96,487 and $127,946 respectively, suggesting a strong local housing market despite price increases.
Federal interest rates have played a significant role in shaping homeownership trends. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This coincided with relatively stable homeownership rates in the 75-81% range. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a slight dip in homeownership to 74-75%. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with a rebound in homeownership to 76% and 78% respectively.
Renter percentages in zip code 61726 have fluctuated inversely to homeownership rates, ranging from 19% to 26% between 2013 and 2022. Average rent prices have shown some volatility, with a general downward trend from $778 in 2013 to $735 in 2022, a 5.5% decrease. Interestingly, the highest renter percentage of 26% in 2018 coincided with a relatively low average rent of $730, suggesting increased rental demand may not always correlate with higher rents in this market.
In 2023 and 2024, we see a continuation of the upward trend in average home prices, reaching $139,447 in 2023 and $148,287 in 2024. This represents a significant 15.9% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply to 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 affordability in the area.
Looking ahead, predictive models suggest a continuation of the upward trend in average home prices for zip code 61726 over the next five years. Based on historical data and current market conditions, we can expect average home prices to potentially reach around $170,000 to $180,000 by 2029. Average rent prices, which have been more volatile, may stabilize or show modest increases, potentially reaching $800 to $850 per month in the same timeframe.
In summary, zip code 61726 demonstrates a robust housing market with high homeownership rates and steadily increasing average home prices. The area has shown resilience to interest rate fluctuations, maintaining strong homeownership levels even as rates have risen recently. While rent prices have been more variable, they have remained relatively affordable. The continued rise in home prices, coupled with higher interest rates, may present challenges for future homebuyers, potentially impacting the longstanding high homeownership rates in this area.
