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Zip Code 62414: Rising Home Values and Strong Ownership in Beecher City, 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 62414, located in Beecher City, Illinois, presents an intriguing case study of homeownership and housing market dynamics in a small Midwestern community. Over the past decade, this area has maintained a consistently high rate of homeownership, with a slight downward trend in recent years. Average home prices have shown a gradual increase, while average rent prices have experienced more volatility.
The homeownership rate in zip code 62414 has remained relatively stable, with a slight decline from 89% in 2014 to 85% in 2022. During this period, average home prices have shown a steady upward trend. In 2016, the average home price was $111,308, which increased to $150,601 by 2022, representing a 35.3% increase over six years. This rise in home prices, coupled with the slight decrease in homeownership, suggests that while property values are appreciating, it may be becoming more challenging for some residents to enter the housing market.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 62414. The period from 2014 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to maintaining the high homeownership levels observed during this time. However, as interest rates began to rise more sharply in 2022 to 1.68%, we see a corresponding dip in homeownership from 87% in 2020 to 85% in 2022, indicating the potential impact of higher borrowing costs on homebuying decisions.
The rental market in zip code 62414 has shown interesting fluctuations. The percentage of renters increased modestly from 11% in 2014 to 15% in 2022. Average rent prices have been volatile, with significant year-to-year changes. For instance, the average rent rose from $404 in 2014 to $658 in 2015, a 62.9% increase. It then dropped to $463 in 2016 before rising again to $867 in 2021, and subsequently decreasing to $620 in 2022. These fluctuations may be influenced by the small rental market size and limited housing stock in the area.
Looking at the most recent data, average home prices in zip code 62414 continued to rise, reaching $157,096 in 2023 and $161,036 in 2024. This represents a 4.3% increase from 2022 to 2023 and a further 2.5% increase from 2023 to 2024. Concurrently, federal interest rates have climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may put pressure on homeownership rates and potentially slow down the pace of home price appreciation in the coming years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 62414 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $180,000 to $190,000 by 2029. For average rent prices, given their historical volatility, we expect continued fluctuations but with a general upward trend. Average rents could potentially range between $700 to $900 by 2029, depending on local economic conditions and housing supply.
In summary, zip code 62414 demonstrates a strong preference for homeownership, with recent trends showing a slight shift towards renting. The area has experienced steady growth in average home prices, which is likely to continue but may be moderated by rising interest rates. The rental market, while smaller, shows significant volatility in pricing, reflecting the dynamic nature of this rural Illinois community's housing landscape.
