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Zip Code 61753: Resilient Housing Market with Rising Home Values and High Ownership Rates
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 61753, located in Lexington, Illinois, has shown interesting demographic and housing trends over the past decade. This area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting the dynamic nature of its real estate market. The homeownership rate in zip code 61753 has remained relatively stable, ranging from 83% to 87% between 2013 and 2022. During this period, average home prices have shown a steady upward trend. In 2013, the average home price was $152,407, which increased to $193,334 by 2022, representing a 26.9% growth over nine years. This rise in home values coincided with generally low federal interest rates, particularly from 2013 to 2016 when rates were below 0.5%. The low-interest environment likely contributed to sustained high homeownership rates by making mortgages more affordable.
The relationship between federal interest rates and homeownership rates in this zip code follows the well-established trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low (0.08% to 1.68%) from 2021 to 2022, the homeownership rate held steady at around 83-86%. This stability in homeownership, despite rising home prices, suggests that low interest rates helped maintain affordability for potential buyers.
Renter percentages in zip code 61753 have shown slight variations, ranging from 12% to 17% between 2013 and 2022. Interestingly, average rent prices have increased moderately during this period. In 2013, the average rent was $670, which rose to $719 by 2022, an increase of 7.3%. This growth in rent prices, while not as dramatic as home prices, still outpaced the overall population growth in the area. The population fluctuated from 2,972 in 2013 to 2,957 in 2022, suggesting that the rise in rent prices was not primarily driven by population pressure but possibly by other factors such as improved rental properties or overall economic conditions in the area.
In 2023 and 2024, the zip code experienced a significant jump in average home prices. The average home price reached $208,443 in 2023 and further increased to $215,581 in 2024, representing a 11.5% increase from 2022 to 2024. This sharp rise coincides with a substantial increase in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests strong demand in the area, possibly driven by factors such as local economic growth or limited housing supply.
Looking ahead, based on the trends observed, we can forecast potential scenarios for the next five years. If the current trajectory continues, average home prices in zip code 61753 could potentially reach around $250,000 to $270,000 by 2029. Average rent prices, if following the same moderate growth pattern, might increase to approximately $780 to $800 per month. However, these projections assume relatively stable economic conditions and interest rates.
In summary, zip code 61753 has demonstrated resilience in its housing market with consistently high homeownership rates despite rising home prices. The area has seen steady growth in both home values and rent prices, outpacing its population growth. The recent sharp increase in home prices, even in the face of rising interest rates, indicates a robust local real estate market. These trends suggest that Lexington, Illinois, remains an attractive area for both homeowners and investors, with potential for continued growth in property values.
