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Zip Code 61875: Rising Home Values and Ownership Rates in Mahomet, 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 61875, located in Mahomet, Illinois, has experienced significant changes in homeownership rates and property values over the past decade. This area has seen a steady increase in both population and homeownership, coupled with rising average home prices and fluctuating average rent costs.
The trend in homeownership percentage has shown a remarkable upward trajectory, rising from 73% in 2013 to 90% in 2022. This increase in homeownership coincides with a substantial growth in average home prices. In 2013, the average home price was $170,250, and by 2022, it had risen to $244,043, representing a 43.3% increase over nine years. This positive correlation suggests that despite rising prices, more residents in the 61875 zip code area were able and willing to purchase homes.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (between 0.09% and 0.40%), homeownership rates in the zip code increased from 73% to 74%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership in the area continued to climb, reaching 90% in 2022. This suggests that other local factors may have had a stronger influence on homeownership than national interest rates in this particular zip code.
Conversely, the percentage of renters in the 61875 zip code area has decreased substantially, from 27% in 2013 to just 10% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend, albeit with some fluctuations. The average rent increased from $799 in 2013 to $864 in 2022, peaking at $976 in 2021. This trend indicates that even as fewer people rent in the area, the rental market has remained relatively strong, possibly due to the overall population growth from 1,305 in 2013 to 1,814 in 2022.
Looking at the most recent data, the average home price in the 61875 zip code area continued its upward trajectory, reaching $252,734 in 2023 and further increasing to $264,001 in 2024. This represents a 3.5% year-over-year increase from 2022 to 2023, and a 4.5% increase from 2023 to 2024. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and property values.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in the 61875 zip code area will continue to rise, potentially reaching around $300,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the recent acceleration in price growth. Average rent prices are also expected to increase, potentially surpassing $1,000 per month within the next five years, assuming the local economy remains strong and population growth continues.
In summary, the 61875 zip code area has demonstrated a strong trend towards homeownership, with a substantial increase in both the percentage of owner-occupied homes and average home prices. Despite rising interest rates, the local housing market has remained robust, with consistent growth in property values. The rental market, while shrinking in terms of the percentage of renters, has maintained relatively high average rents, indicating ongoing demand for rental properties in the area. These trends suggest a dynamic and growing community with a strong preference for homeownership.
