Loading Content...
Zip Code 62074: Rising Home Values and Strong Ownership in New Douglas, Illinois
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 62074, located in New Douglas, Illinois, presents an intriguing case study of homeownership and housing market trends. This rural area has maintained a consistently high rate of homeownership over the past decade, with average home prices showing steady growth and average rent prices fluctuating within a relatively narrow range.
The homeownership rate in zip code 62074 has remained remarkably stable, hovering around 85% from 2013 to 2020. However, there was a notable increase to 87% in 2021 and 2022. This high rate of homeownership coincides with a consistent upward trend in average home prices. In 2012, the average home price was $115,713, and it steadily increased to $190,517 by 2022, representing a 64.6% increase over a decade. This trend suggests a strong correlation between rising home values and sustained homeownership rates in the area.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.09% to 0.4%), homeownership rates in zip code 62074 remained stable at around 85%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was no significant change in homeownership rates, indicating the area's resilience to moderate interest rate increases. The slight uptick in homeownership to 87% in 2021 and 2022 coincided with a period of extremely low interest rates (0.08% in 2021), likely encouraging more residents to purchase homes.
Renter percentages in zip code 62074 have remained relatively low, fluctuating between 12% and 18% from 2013 to 2022. Interestingly, average rent prices have shown some volatility during this period. In 2013, the average rent was $841, which decreased to $733 in 2015 before rising again to $886 in 2021. The most recent data for 2022 shows a slight decrease to $812. These fluctuations in rent prices don't appear to have a strong correlation with the percentage of renters, suggesting that other factors, such as local economic conditions or housing supply, may be influencing rent prices more significantly than demand from renters.
Looking at the most recent data, the average home price in zip code 62074 reached $193,243 in 2023 and further increased to $199,811 in 2024. This represents a continued upward trend in home values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, the local housing market appears to be maintaining its growth trajectory.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 62074 to continue their upward trajectory, potentially reaching around $230,000 to $240,000 by 2029. This projection is based on the historical growth rate and assumes relatively stable economic conditions. For average rent prices, the forecast suggests a more moderate increase, potentially reaching $900 to $950 per month by 2029, considering the historical fluctuations and overall upward trend.
In summary, zip code 62074 demonstrates a robust housing market characterized by high homeownership rates and steadily increasing average home prices. The area has shown resilience to interest rate changes, maintaining strong homeownership levels even as rates have fluctuated. While rent prices have been more volatile, they have generally trended upward, albeit at a slower pace than home prices. The continued increase in home values, despite rising interest rates, suggests a sustained demand for housing in this rural Illinois community.
