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Zip Code 61814: Rising Home Values and High Ownership Rates in Rural Illinois Village
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 61814, representing the village of Bismarck in Illinois, presents an intriguing case study of homeownership and rental trends in a small rural community. Over the past decade, this area has experienced fluctuations in both ownership rates and housing prices, with a general trend towards increased homeownership and rising property values.
The ownership percentage in zip code 61814 has shown a notable upward trend, increasing from 85% in 2013 to 90% in 2022. This rise in homeownership coincides with a steady increase in average home prices. In 2017, the average home price was $120,698, which grew to $141,019 by 2022, representing a 16.8% increase over five years. This positive correlation suggests that rising property values have not deterred local residents from pursuing homeownership, possibly due to the perceived investment potential of real estate in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 61814. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable at around 80-85%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a concurrent increase in homeownership to 90%. This trend contradicts the typical expectation that higher interest rates would deter homeownership, suggesting that other local factors may have a stronger influence on housing decisions in this community.
Renter percentages in zip code 61814 have inversely mirrored the homeownership trends, decreasing from 15% in 2013 to 10% in 2022. Interestingly, average rent prices have shown volatility during this period. In 2013, the average rent was $781, which decreased to $717 in 2018 before rising again to $874 in 2022. This represents an overall increase of 11.9% from 2013 to 2022. The fluctuation in rent prices, coupled with the decreasing renter population, suggests a complex rental market possibly influenced by local economic factors and a shift towards homeownership.
In 2023 and 2024, zip code 61814 continued to experience growth in average home prices. The average home price reached $146,247 in 2023 and further increased to $149,780 in 2024, representing a 3.7% and 2.4% year-over-year growth respectively. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. The continued appreciation of home values in the face of higher interest rates indicates strong local demand and a resilient housing market in this zip code.
Looking ahead, predictive models suggest that average home prices in zip code 61814 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to the higher interest rate environment. Average rent prices are also expected to increase moderately, driven by overall inflation and the limited rental supply in the area. However, the strong preference for homeownership in this community may keep rental demand relatively low.
In summary, zip code 61814 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The community has shown resilience to rising interest rates, with homeownership rates and home prices continuing to climb. The rental market, while experiencing some price volatility, has become a smaller segment of the housing landscape. These trends paint a picture of a stable, growth-oriented housing market in this rural Illinois village, with a strong preference for homeownership among its residents.
