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Zip Code 62281: Rising Home Values and Strong Ownership in St. Jacob, 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 62281, located in St. Jacob, Illinois, has experienced notable shifts in homeownership, average home prices, and average rent prices over the past decade. This area has seen a general trend of increasing homeownership rates alongside rising average home values, with some fluctuations in the rental market. The homeownership rate in zip code 62281 has shown a generally upward trend, increasing from 89% in 2013 to 91% in 2022. This rise in homeownership coincides with a significant increase in average home prices, which grew from $184,677 in 2013 to $301,907 in 2022, representing a 63.5% increase over this period. The strongest correlation between homeownership rates and average home prices occurred between 2020 and 2021, when ownership jumped from 91% to 94%, while average home prices surged from $238,532 to $271,162, a 13.7% increase in just one year.
Federal interest rates have played a role in homeownership trends in the area. The period from 2013 to 2020 saw consistently low interest rates, ranging from 0.09% to 2.16%, which likely contributed to the sustained high levels of homeownership. The sharp drop in interest rates from 2.16% in 2019 to 0.38% in 2020 and 0.08% in 2021 coincided with the peak in homeownership at 94% in 2021, suggesting that the extremely low rates may have incentivized home purchases.
Renter percentages in zip code 62281 have fluctuated inversely to homeownership rates, decreasing from 11% in 2013 to 9% in 2022. Average rent prices have shown volatility, rising from $987 in 2013 to a peak of $1,163 in 2021, before slightly declining to $1,093 in 2022. Interestingly, the population growth from 4,160 in 2013 to 4,485 in 2022 did not consistently correlate with rent increases, suggesting other factors influencing rental prices in the area.
In 2023 and 2024, average home prices in zip code 62281 continued to rise, reaching $311,025 in 2023 and $321,733 in 2024. This represents a 6.6% increase from 2022 to 2024. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting future homeownership trends.
Looking ahead, predictive models suggest that average home prices in zip code 62281 may continue to rise, potentially reaching around $350,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,300 per month within the next five years. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 62281 has demonstrated a strong trend towards homeownership, with rising average home prices and fluctuating rent prices. The area has shown resilience in maintaining high homeownership rates despite significant increases in property values. The recent spike in interest rates may influence future trends, potentially slowing the rate of home price appreciation and affecting affordability for prospective buyers.
