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Zip Code 62360: Rising Home Values and High Ownership Rates in Payson, 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 62360, located in Payson, Illinois, has experienced significant shifts in homeownership rates and housing prices over the past decade. This area has shown a general trend towards increased homeownership, with fluctuations in average home prices and rent costs.
The ownership percentage in zip code 62360 has seen a notable increase from 75% in 2016 to 88% in 2022. This rise in homeownership coincides with a steady increase in average home prices, which grew from $105,299 in 2016 to $144,816 in 2022, representing a 37.5% increase over six years. The trend suggests a strong correlation between rising home values and increased homeownership rates in the area.
Federal interest rates have played a significant role in homeownership trends. In 2016, when the federal interest rate was 0.4%, the homeownership rate was 75%. As interest rates rose to 1.83% in 2018, homeownership increased to 83%, possibly due to anticipation of further rate hikes. The homeownership rate continued to climb, reaching 87% in 2020 when interest rates dropped to 0.38%, likely encouraging more buyers to enter the market.
The percentage of renters in zip code 62360 has decreased from 25% in 2016 to 12% in 2022. Interestingly, despite this decrease in renters, average rent prices have shown volatility. The average rent rose from $759 in 2016 to a peak of $1,005 in 2020, before declining to $755 in 2022. This trend may be influenced by the area's population fluctuations, which peaked at 3,025 in 2018 and decreased to 2,381 by 2022, potentially affecting rental demand and prices.
In 2023 and 2024, the housing market in zip code 62360 continued to show growth. The average home price increased to $154,923 in 2023 and further to $156,596 in 2024, representing a 7% increase from 2022 to 2024. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, the highest levels in over a decade.
Looking ahead, predictive models suggest a continued upward trend in average home prices for zip code 62360 over the next five years. Based on historical data and current market conditions, average home prices could potentially reach around $175,000 to $180,000 by 2029. Average rent prices, which have shown more volatility, are predicted to stabilize and potentially increase moderately, possibly reaching $800 to $850 per month in the same timeframe.
In summary, zip code 62360 has demonstrated a strong trend towards homeownership, with a significant increase in average home prices. The area has shown resilience in its housing market, maintaining growth even in the face of rising interest rates. The rental market, while smaller, has shown more volatility, influenced by population changes and broader economic factors. These trends suggest a continuing robust housing market in this Illinois village, with a preference for homeownership among its residents.
