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Zip Code 62010: Rising Home Values and Ownership in Bethalto, 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 62010, encompassing Bethalto in Illinois, presents an interesting case study in real estate trends over the past decade. This small community has experienced significant shifts in homeownership rates and property values, reflecting broader economic changes and local market dynamics. The homeownership rate in zip code 62010 has shown a notable upward trend, particularly in recent years. In 2013, 73% of residents owned their homes, but by 2022, this figure had increased to 80%. This rise in homeownership coincided with a steady increase in average home prices. In 2013, the average home price was $119,174, and by 2022, it had risen to $171,864, representing a 44% increase over this period. The most substantial year-over-year growth occurred between 2020 and 2021, when average home prices jumped from $143,262 to $157,440, a 9.9% increase.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 62010. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the increased homeownership, making mortgages more affordable for potential buyers. The sharp rise in homeownership from 77% in 2019 to 82% in 2020 coincided with a drop in the federal interest rate from 2.16% to 0.38%, illustrating the strong correlation between low interest rates and higher homeownership rates.
Conversely, the renter population in zip code 62010 has decreased over time. In 2013, 26% of residents were renters, but by 2022, this percentage had dropped to 20%. Despite this decrease, average rent prices have shown some volatility. In 2013, the average rent was $914, rising to a peak of $975 in 2016 before declining to $847 in 2022. This decline in average rent, coupled with a decreasing renter population, suggests a shift towards homeownership in the area, possibly driven by the aforementioned low interest rates and increasing home values.
In 2023 and 2024, the real estate market in zip code 62010 continued to evolve. The average home price rose to $180,542 in 2023 and further increased to $187,658 in 2024, representing a steady upward trend. However, this price growth has occurred alongside a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 62010 will continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are expected to stabilize and potentially increase moderately, reflecting the area's shifting demographics and housing preferences.
In summary, zip code 62010 has experienced a significant increase in homeownership rates and average home prices over the past decade, driven by favorable interest rates and local market conditions. The recent rise in interest rates, coupled with steadily increasing home prices, may reshape the housing market dynamics in the coming years, potentially affecting affordability and the balance between homeownership and renting in this Illinois community.
