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Zip Code 62262: Rising Home Values and High Ownership Rates in Vandalia, 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 62262, located in Vandalia, Illinois, is a relatively small area with a population of 1,875 as of 2022. This zip code has experienced interesting fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market conditions. The homeownership rate in zip code 62262 has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate was 85%, which increased to 90% in 2015 and 2018. However, by 2022, it had decreased slightly to 84%. During this same period, average home prices showed a general upward trend. In 2012, the average home price was $96,182, which increased to $131,546 by 2022, representing a 36.8% increase over a decade.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), homeownership rates in the zip code remained high, between 85% and 90%. As interest rates began to rise from 2017 onwards, there was a slight decrease in homeownership rates, dropping to 84% by 2022 when the federal interest rate reached 1.68%.
Renter percentages in zip code 62262 have shown an inverse relationship to homeownership rates, naturally. The percentage of renters was lowest in 2015 and 2018 at 10%, corresponding to the highest homeownership rates. By 2022, the renter percentage had increased to 16%. Average rent prices, however, have not shown a consistent upward trend. In 2013, the average rent was $857, which decreased to $666 in 2019, before rising again to $699 in 2022. This fluctuation in rent prices could be attributed to changes in local economic conditions and housing supply.
In 2023 and 2024, average home prices in zip code 62262 continued to rise, reaching $135,797 in 2023 and $136,251 in 2024. This represents a modest increase of 3.6% from 2022 to 2024. Interestingly, this growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This suggests that local market factors may be outweighing the impact of higher borrowing costs on home prices in this area.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in zip code 62262 will continue to rise moderately over the next five years, potentially reaching around $150,000 by 2029. Rent prices, which have been more volatile, may stabilize and show a gradual increase, possibly reaching an average of $750-$800 per month by 2029. However, these projections assume relatively stable economic conditions and no major shifts in local market dynamics.
In summary, zip code 62262 has maintained a high rate of homeownership despite fluctuations in the housing market and interest rates. The area has seen steady growth in average home prices, while rent prices have been more variable. The resilience of home prices in the face of rising interest rates in recent years suggests a strong local housing market, which is likely to continue its upward trajectory in the near future.
