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Zip Code 61738: Rising Home Values and Shifting Ownership Trends in El Paso, 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 61738, located in El Paso, Illinois, presents an interesting case study of homeownership and rental trends over the past decade. This area has experienced fluctuations in both population and housing market dynamics, with a general trend towards increased homeownership and rising average home prices.
The homeownership rate in zip code 61738 has shown resilience, maintaining a relatively high level throughout the observed period. In 2013, 77% of housing units were owner-occupied, and this figure remained stable until 2021 when it slightly decreased to 75%. By 2022, the homeownership rate had further declined to 74%. Despite these minor fluctuations, the area has consistently maintained a strong majority of owner-occupied homes. Concurrently, average home prices in the area have shown a general upward trend. In 2013, the average home price was $131,422, which steadily increased to $170,101 by 2022, representing a significant 29.4% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. From 2013 to 2020, when interest rates were historically low, ranging from 0.09% to 2.16%, the homeownership rate remained relatively stable at around 77-79%. However, as interest rates began to rise more sharply in 2022 to 1.68%, we observed a slight decrease in homeownership to 74%. This trend aligns with the general expectation that lower interest rates encourage homeownership due to more affordable financing options.
Regarding rental trends, the percentage of renter-occupied housing units in zip code 61738 has shown slight variations. In 2013, 23% of housing units were renter-occupied, and this figure remained relatively stable until 2021 when it increased to 25%, further rising to 26% in 2022. Average rent prices have shown more volatility. In 2013, the average rent was $703, which increased significantly to $886 in 2014. After some fluctuations, it reached $843 in 2022. It's important to note that these rent changes occurred against a backdrop of a relatively stable population, which stood at 3,657 in 2022, only slightly lower than the 3,823 recorded in 2013.
Looking at the most recent data, the average home price in zip code 61738 continued its upward trajectory, reaching $171,550 in 2023 and further increasing to $173,788 in 2024. This represents a modest but steady growth of 1.3% from 2023 to 2024. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 61738 will continue to rise, albeit at a more moderate pace. Given the historical data and current economic conditions, we project average home prices could reach approximately $185,000 to $190,000 by 2029. For rent prices, considering the historical volatility, we expect a more modest increase, potentially reaching an average of $900 to $950 per month by 2029.
In summary, zip code 61738 has demonstrated a robust homeownership market with steadily increasing average home prices over the past decade. Despite recent slight decreases in homeownership rates, possibly influenced by rising interest rates, the area maintains a strong owner-occupied housing majority. Rental markets have shown more variability in pricing but have seen a slight increase in the proportion of renters. The coming years may present challenges with higher interest rates, but the area's housing market appears poised for continued, albeit more moderate, growth.
