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Zip Code 62060: Rising Home Values and Fluctuating Ownership Rates in Madison, 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 62060, located in Madison, Illinois, has experienced significant demographic and economic shifts over the past decade. This area has seen fluctuating homeownership rates, alongside notable changes in average home prices and average rent prices, reflecting the dynamic nature of its real estate market.
The homeownership rate in zip code 62060 has shown variability over the years. In 2013, the area had a homeownership rate of 51%, which gradually decreased to 42% by 2020, the lowest point in the observed period. However, by 2022, the rate had rebounded to 50%. This fluctuation in homeownership coincides with changes in average home prices. In 2013, the average home price was $21,479, which steadily increased to $39,123 by 2022, representing an 82% increase over this period. The most significant jump occurred between 2020 and 2021, with average home prices rising from $30,074 to $38,030, a 26% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 62060. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. Despite these low rates, homeownership declined during this period, suggesting that other local economic factors may have had a stronger influence on housing decisions in this area. However, as interest rates began to rise more sharply in 2022 to 1.68%, we saw a corresponding increase in homeownership rates, possibly indicating a rush to secure mortgages before rates climbed higher.
The rental market in zip code 62060 has also experienced significant changes. The percentage of renters increased from 48% in 2013 to a peak of 58% in 2020, before settling back to 50% in 2022. Average rent prices have shown an overall upward trend, rising from $810 in 2013 to $812 in 2022, with some fluctuations in between. The highest average rent was recorded in 2018 at $881. It's worth noting that the population of the zip code has been declining, from 4,075 in 2013 to 3,036 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, we see a continuation of the upward trend in average home prices in zip code 62060. The average home price reached $39,683 in 2023 and further increased to $43,681 in 2024, representing a 10% rise in just one year. This significant increase occurred despite the federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen since 2007. These high interest rates would typically be expected to cool the housing market, but the continued price growth suggests strong local demand or limited housing supply in this area.
Looking ahead, our predictive models forecast a continued increase in both average home prices and average rent prices over the next five years in zip code 62060. Average home prices are projected to reach approximately $55,000 by 2029, assuming the current growth rate persists. Average rent prices are expected to increase at a more moderate pace, potentially reaching around $900 per month by 2029. However, these projections are subject to change based on various economic factors and local market conditions.
In summary, zip code 62060 has experienced a volatile housing market over the past decade, with significant fluctuations in homeownership rates and substantial increases in average home prices. The rental market has shown more stability in terms of pricing, but with notable shifts in the proportion of renters. The area's declining population adds an interesting dimension to these trends, potentially influencing both the ownership and rental markets. As we move forward, the interplay between rising home prices, high interest rates, and demographic changes will likely continue to shape the real estate landscape in this Madison zip code.
