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Zip Code 61863: Rising Home Values and High Ownership Rates in Rural 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 61863, encompassing Pesotum in Illinois, presents an interesting case study in rural housing dynamics. This area has experienced fluctuations in homeownership rates and average home prices over the past decade, with a general trend towards increased property values and a slight decline in owner-occupied housing in recent years.
The homeownership rate in zip code 61863 has shown some variability between 2013 and 2022. In 2013, the area boasted a high 91% homeownership rate. This rate peaked at 95% in 2017 before gradually declining to 82% by 2022. Despite this recent decrease in homeownership, average home prices have consistently risen. The average home price in 2013 was $121,006, which steadily increased to $175,617 by 2022, representing a 45% increase over this period.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This coincided with the peak homeownership rate of 95% in 2017. As interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, we observed a gradual decline in homeownership rates. This aligns with the well-established trend that lower interest rates generally encourage homeownership due to more affordable financing options.
The rental market in zip code 61863 has shown interesting trends in relation to the homeownership shifts. As the percentage of renters increased from 4% in 2017 to 17% in 2022, average rent prices fluctuated. In 2013, the average rent was $929, which decreased to $842 in 2017 when homeownership was at its peak. As more residents began renting, the average rent increased slightly to $851 by 2022. This suggests that while there has been an increase in rental demand, it has not led to significant rent price inflation in this rural area.
Looking at the most recent data for 2023 and 2024, we see that average home prices have continued to rise. In 2023, the average home price reached $179,951, and in 2024 it further increased to $187,285. This represents a 6.6% increase from 2022 to 2024. Notably, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices in the area have continued to appreciate.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 61863 will continue to rise, albeit potentially at a slower rate due to the higher interest rate environment. We expect average home prices to reach approximately $210,000 to $220,000 by 2029. For rent prices, given the recent stability and the rural nature of the area, we predict a modest increase to around $900 to $950 per month over the next five years.
In summary, zip code 61863 has experienced a gradual shift from peak homeownership to increased renting, while simultaneously seeing substantial growth in average home values. The area has demonstrated resilience in property values even in the face of rising interest rates, suggesting strong underlying demand for housing in this rural Illinois community. The rental market has remained relatively stable despite increased demand, indicating a balanced housing ecosystem in the area.
