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Zip Code 62268: Rising Home Values and High Ownership Rates in Rural Illinois Village
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 62268, located in Oakdale, Illinois, presents an interesting case study of homeownership and rental trends in a small rural community. Over the past decade, this area has experienced fluctuations in both homeownership rates and housing prices, reflecting broader economic shifts and local dynamics.
The homeownership rate in zip code 62268 has shown a general trend of decline followed by a recent rebound. In 2013, the area boasted a high 94% homeownership rate. However, this figure steadily decreased to 77% by 2019, indicating a shift towards more rental occupancy. Interestingly, this trend reversed in recent years, with homeownership climbing back to 92% by 2022. During this period, average home prices in the area also saw significant growth. From 2019 to 2022, average home prices increased from $135,962 to $178,126, representing a substantial 31% rise over just three years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation, although local factors appear to have a strong influence as well. As interest rates remained low from 2013 to 2016, hovering around 0.1%, homeownership rates actually declined. However, the recent uptick in homeownership from 2019 to 2022 coincided with interest rates that, while rising, were still relatively low historically, ranging from 2.16% to 1.68%. This suggests that while low interest rates may have contributed to the recent increase in homeownership, other local factors likely played a significant role in the area's housing market dynamics.
Renter percentages and average rent prices in zip code 62268 have shown interesting trends. As homeownership declined from 2013 to 2019, the percentage of renters increased from 6% to 23%. During this period, average rent prices fluctuated considerably. In 2013, the average rent was $984, which dropped to $670 in 2015, then rose again to $991 in 2016, before declining to $646 in 2019. These fluctuations might be attributed to changes in local housing supply and demand, as well as the overall economic conditions affecting the area.
Looking at the most recent data for 2023 and 2024, we see that average home prices in zip code 62268 have continued to rise, albeit at a slower pace. The average home price in 2023 was $176,437, showing a slight decrease from 2022, but then increased to $178,441 in 2024. This modest growth occurs despite the significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be tempering home price growth and could potentially impact homeownership rates in the coming years.
Applying predictive models to forecast 5-year trends, we can anticipate continued but moderate growth in average home prices for zip code 62268. Given the recent slowdown in price appreciation and higher interest rates, we might expect average home prices to reach around $190,000 to $200,000 by 2029. For rent prices, the forecast suggests a potential stabilization or slight increase, possibly reaching an average of $700 to $750 per month by 2029, assuming local economic conditions remain stable.
In summary, zip code 62268 has experienced significant shifts in homeownership rates and housing prices over the past decade. The area has seen a recent resurgence in homeownership, coupled with substantial growth in home values. While federal interest rates have influenced these trends to some extent, local factors appear to play a crucial role in shaping the housing market dynamics of this small Illinois community. As we look to the future, moderate growth in both home prices and rent is anticipated, but this will likely be tempered by higher interest rates and local economic conditions.
