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Zip Code 62421: Rising Homeownership and Stable Home Values in Rural 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 62421, located in Claremont, Illinois, has shown interesting demographic and housing trends over the past decade. This rural area has experienced fluctuations in population and a significant shift towards homeownership, with average home and rent prices displaying notable changes.
The homeownership rate in zip code 62421 has seen a remarkable increase from 85% in 2013 to 96% in 2022. This trend coincides with changes in average home prices, though specific figures are only available for recent years. The strong preference for homeownership in this area is evident, with the percentage of owner-occupied homes consistently rising over the years.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2010 to 2021 saw historically low interest rates, hovering around 0.1% to 0.4%. This favorable lending environment likely contributed to the steady increase in homeownership rates in zip code 62421. As interest rates began to rise in 2022 to 1.68%, we see a slight dip in homeownership from 97% to 96%, suggesting a potential correlation between higher interest rates and a marginal decrease in homeownership.
The percentage of renters in zip code 62421 has decreased significantly from 14% in 2013 to just 4% in 2022. This decline in renters corresponds with fluctuations in average rent prices. The average rent peaked at $850 in 2017 when the renter percentage was 9%, then decreased to $699 in 2022 as the renter population further declined to 4%. This trend suggests that as fewer people rent in the area, landlords may have adjusted prices to attract the limited pool of potential tenants.
In 2023, the average home price in zip code 62421 was $154,362, with federal interest rates at 5.02%. Moving into 2024, we see a slight decrease in average home prices to $152,474, while interest rates have increased to 5.33%. This slight downturn in home prices could be attributed to the rising interest rates, potentially making homeownership less affordable for some buyers.
Looking ahead, based on the current trends and economic factors, we can predict that average home prices in zip code 62421 may continue to experience modest fluctuations over the next five years. If interest rates remain elevated, we might see a stabilization or slight decrease in home prices. Average rent prices could potentially increase as the rental market becomes more competitive due to the limited supply of rental properties in the area.
In summary, zip code 62421 has demonstrated a strong trend towards homeownership, with owner-occupied homes reaching 96% in 2022. The area has experienced fluctuations in average rent prices corresponding to changes in the renter population. Recent data shows a slight decrease in average home prices from 2023 to 2024, possibly influenced by rising interest rates. These trends suggest a dynamic housing market in this rural Illinois community, with a clear preference for homeownership among residents.
