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Zip Code 61811: Average Home Values and Ownership Trends in Alvan, Illinois
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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 61811, representing the village of Alvan (Alvin) in Illinois, presents an interesting case study of housing trends in a small rural community. Over the past decade, this area has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic shifts and local demographic changes. The homeownership rate in zip code 61811 has shown a general decline from 2013 to 2019, followed by a rebound in recent years. In 2013, the area boasted a high 84% homeownership rate. This figure decreased to 73% by 2017 and remained stable until 2019. However, from 2020 onwards, there has been a notable increase, with homeownership reaching 79% in 2022. Interestingly, this trend coincides with changes in average home prices. The average home price in 2017 was $108,137, which remained relatively stable until 2020 when it increased to $111,549. A significant jump occurred in 2021, with average prices rising to $119,938, and further to $131,873 in 2022.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. The period from 2013 to 2016, when interest rates were exceptionally low (ranging from 0.09% to 0.4%), coincided with a decline in homeownership. This could be attributed to other economic factors outweighing the benefits of low interest rates. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized. The subsequent drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with the rebound in homeownership rates, possibly as buyers took advantage of favorable borrowing conditions.
Renter percentages in zip code 61811 showed an inverse relationship to homeownership trends, naturally. The renter population increased from 16% in 2013 to a peak of 27% in 2016, before stabilizing around 26% from 2017 to 2019. Since 2020, there has been a decrease in renters, down to 21% in 2022. Average rent prices have generally increased over this period, rising from $678 in 2013 to a peak of $916 in 2018. However, there has been a decline in recent years, with the average rent at $763 in 2022. This trend in rent prices doesn't directly correlate with the percentage of renters, suggesting other factors such as local economic conditions or housing supply may be influencing rental dynamics.
In 2023 and 2024, zip code 61811 experienced further changes in the housing market. The average home price reached $134,777 in 2023, the highest in the observed period. However, there was a slight decrease to $130,710 in 2024. This coincided with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may have contributed to the slight cooling in home prices.
Looking ahead, based on the observed trends, we can project potential scenarios for the next five years. Average home prices in zip code 61811 may continue to experience moderate growth, potentially reaching around $140,000-$145,000 by 2029, assuming economic conditions remain stable. However, this growth may be tempered by the current high interest rates. Average rent prices might stabilize or see slight increases, potentially reaching $800-$850 by 2029, as the market adjusts to changes in homeownership rates and overall housing demand.
In summary, zip code 61811 has demonstrated resilience in its housing market, with recent years showing a trend towards increased homeownership and rising home values. The interplay between interest rates, home prices, and rental markets continues to shape the local housing landscape, reflecting both national economic trends and local community dynamics.
