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Zip Code 62014: Average Home Values and Ownership Trends in Bunker Hill, 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 62014, located in Bunker Hill, Illinois, presents an interesting case study of housing trends in a small Midwestern community. Over the past decade, this area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 62014 has shown resilience, with a slight overall increase from 77% in 2019 to 82% in 2022. This trend correlates with the steady rise in average home prices, which grew from $128,383 in 2019 to $156,069 in 2022, representing a 21.6% increase over three years. The relationship between homeownership and housing prices suggests that residents in this area have maintained their ability to purchase homes despite rising costs, possibly due to strong local economic conditions or a preference for homeownership in this community.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 62014. The period from 2019 to 2021 saw historically low interest rates, dropping from 2.16% in 2019 to 0.08% in 2021. This low-interest environment likely contributed to the increased homeownership rate, as it made mortgage financing more affordable for potential buyers. The rise in homeownership from 77% in 2019 to 78% in 2021 aligns with this period of low interest rates, demonstrating the typical inverse relationship between interest rates and homeownership rates.
Renter percentages in zip code 62014 have fluctuated inversely with homeownership rates, decreasing from 23% in 2019 to 18% in 2022. Interestingly, average rent prices have shown volatility during this period. The average rent increased from $802 in 2019 to a peak of $998 in 2017, before decreasing to $750 in 2022. This decrease in average rent, coupled with the declining renter percentage, suggests a shift in the local housing market favoring homeownership. The population decline from 3,820 in 2019 to 3,940 in 2022 may have also influenced the rental market, potentially reducing demand for rental properties.
In 2023 and 2024, the average home prices in zip code 62014 continued to rise, reaching $157,803 in 2023 and $159,052 in 2024. This represents a modest but steady increase of 1.9% from 2022 to 2024. Concurrently, federal interest rates climbed significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the low rates of previous years. Despite these higher interest rates, which typically discourage home buying, the continued rise in home prices suggests ongoing demand for housing in this area.
Looking ahead, predictive models forecast a continuation of the upward trend in average home prices for zip code 62014 over the next five years. Based on historical data and current market conditions, average home prices could potentially reach around $170,000 to $175,000 by 2029. Average rent prices, which have shown more volatility, are predicted to stabilize and potentially increase moderately, possibly reaching $800 to $850 per month in the same timeframe.
In summary, zip code 62014 has demonstrated a strong preference for homeownership, with rates increasing despite rising home prices. The area has shown resilience in its housing market, maintaining growth in home values even in the face of significant interest rate increases. The rental market has become less prominent, with decreasing renter percentages and fluctuating rent prices. As the community moves forward, it appears poised for continued growth in home values, with a housing market that favors ownership over renting.
