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Zip Code 61817: Rising Home Values and Declining Ownership in Catlin, 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 61817, encompassing Catlin in Illinois, presents an intriguing case study of housing trends in a small Midwestern community. Over the past decade, this area has experienced notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic and demographic changes.
The homeownership rate in zip code 61817 has shown a gradual decline from 2013 to 2022. In 2013, 82% of housing units were owner-occupied, but by 2022, this figure had decreased to 72%. Conversely, the percentage of renter-occupied units increased from 18% to 28% during the same period. This shift coincided with a steady rise in average home prices. In 2013, the average home price was $84,415, and by 2022, it had climbed to $130,603, representing a substantial increase of 54.7% over nine years.
The relationship between federal interest rates and homeownership rates in this zip code follows a generally inverse pattern. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 80-83%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined to 72%. This trend aligns with the economic principle that lower interest rates typically encourage homeownership due to more affordable mortgage financing.
Examining renter percentages and average rent prices reveals an interesting dynamic. As the proportion of renters increased from 18% in 2013 to 28% in 2022, average rent prices fluctuated. In 2013, the average rent was $749, peaking at $842 in 2021 before dropping to $690 in 2022. This volatility in rent prices, despite the increasing renter population, could be influenced by various factors including local economic conditions and housing supply changes.
The years 2023 and 2024 have seen continued growth in average home prices in zip code 61817. The average home price reached $137,253 in 2023 and further increased to $141,854 in 2024. This represents a 5.1% increase from 2022 to 2023 and an additional 3.4% rise from 2023 to 2024. Notably, these price increases occurred despite a significant jump in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024.
Looking ahead, predictive models suggest that average home prices in zip code 61817 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are likely to stabilize or increase modestly, influenced by the growing renter population and overall housing market conditions.
In summary, zip code 61817 has experienced a notable shift towards renting, with homeownership rates declining by 10 percentage points from 2013 to 2022. Despite this trend, average home prices have shown robust growth, increasing by over 50% during the same period. The interplay between interest rates, homeownership, and housing prices in this area reflects broader economic trends and local market dynamics, pointing towards a changing landscape in this Illinois community.
