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Zip Code 61821: Home Values and Ownership Trends Near University of 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 61821, located in Champaign, Illinois, covers an area of 7.7 square miles. This urban area has experienced fluctuations in homeownership rates and housing prices over the past decade. The overall trend shows a slight decline in homeownership, while average home prices and average rent prices have generally increased.
The homeownership rate in zip code 61821 has shown a gradual decline from 61% in 2013 to 59% in 2022. During this same period, average home prices have increased significantly. In 2013, the average home price was $119,770, which rose to $162,626 by 2022, representing a 35.8% increase. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 60-62%. However, as interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), homeownership rates declined more noticeably, dropping from 59% to 55%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in zip code 61821 has increased from 39% in 2013 to 41% in 2022. Correspondingly, average rent prices have also risen, from $1,015 in 2013 to $1,022 in 2022. While this represents only a modest 0.7% increase over the decade, it's worth noting that average rent peaked at $1,155 in 2019 before declining slightly. The population in this zip code has remained relatively stable, fluctuating between 28,000 and 30,000 residents, which may have contributed to the moderate changes in rental demand and prices.
Looking at more recent data, the average home price in zip code 61821 continued its upward trajectory, reaching $170,823 in 2023 and $180,179 in 2024. This represents a significant 10.8% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying affordability and could potentially influence future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 61821 will continue to rise, potentially reaching around $210,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and recent accelerated growth. For average rent prices, we expect a more moderate increase, potentially reaching approximately $1,150 by 2029, assuming the area's population and economic conditions remain stable.
In summary, zip code 61821 has experienced a gradual shift towards renting, with homeownership rates declining slightly over the past decade. Average home prices have shown substantial growth, particularly in recent years, while average rent prices have fluctuated but remained relatively stable overall. The interplay between federal interest rates, housing affordability, and demographic changes will likely continue to shape the housing market in this Champaign zip code in the coming years.
