Zip Code 62243: Rising Home Values and Stable Ownership in Freeburg, Illinois
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Zip code 62243, located in Freeburg, Illinois, presents an interesting case study of homeownership and rental trends over the past decade. This area has experienced fluctuations in its population and housing market, with a general trend towards increased average home prices and a relatively stable homeownership rate.
The homeownership rate in zip code 62243 has remained relatively high, hovering around 81-86% between 2013 and 2022. During this period, average home prices have shown a steady upward trend. In 2013, the average home price was $158,699, which increased to $236,750 by 2022, representing a significant 49.2% growth over nine years. This price appreciation occurred despite some fluctuations in the homeownership rate, which reached its peak of 86% in 2016 before settling at 81% in 2022.
Federal interest rates have played a role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate in zip code 62243 increased from 84% to 86%. As interest rates began to rise more significantly from 2017 onwards, there was a slight decline in homeownership, dropping to 81% by 2022. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages and average rent prices in zip code 62243 have shown some interesting patterns. The percentage of renters increased from 15% in 2013 to 19% in 2022. During this period, average rent prices fluctuated, starting at $982 in 2013, dropping to a low of $856 in 2018, and then rising again to $920 in 2022. It's worth noting that despite the increase in renter percentage, the population of the zip code remained relatively stable, only increasing from 6,258 in 2013 to 6,365 in 2022, suggesting a shift in housing preferences rather than a significant influx of new residents.
Looking at the most recent data, average home prices in zip code 62243 continued to rise, reaching $240,104 in 2023 and $246,842 in 2024. This represents a 4.3% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, rising from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 62243 will continue to appreciate, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach around $275,000 to $290,000 by 2029. For rent prices, the forecast suggests a moderate increase, potentially reaching an average of $1,050 to $1,100 per month by 2029, assuming current economic conditions and local market factors remain relatively stable.
In summary, zip code 62243 has maintained a high homeownership rate while experiencing significant growth in average home prices over the past decade. The area has also seen a slight increase in the renter population, with fluctuating but generally increasing rent prices. The recent sharp rise in interest rates may influence future housing market dynamics, potentially moderating the rapid home price appreciation observed in recent years.
