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Zip Code 62447: Rising Home Values and Stable Ownership in Neoga, 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 62447, located in Neoga, Illinois, has experienced fluctuations in homeownership rates and housing prices over the past decade. This area, covering 69.26 square miles, has seen notable shifts in its real estate landscape, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 62447 has remained relatively stable, with slight variations over the years. In 2013, the area had an 84% homeownership rate, which increased to 86% in 2016, the highest in the observed period. However, by 2022, it settled at 82%. Concurrently, average home prices have shown a steady upward trend. In 2012, the average home price was $87,667, which rose to $127,862 by 2022, representing a 45.8% increase over this period. This trend suggests a growing real estate market value despite minor fluctuations in homeownership rates.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (0.11% to 0.40%), homeownership in the area reached its peak at 86%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise more significantly from 2017 onwards, we see a slight decline in homeownership rates, settling at 82% by 2022.
Renter percentages and average rent prices in zip code 62447 have shown an interesting correlation. In 2013, with 16% of the population renting, the average rent was $519. By 2022, the renter percentage increased slightly to 18%, while the average rent rose to $634, a 22.2% increase. The peak in average rent was observed in 2021 at $721, coinciding with a 19% renter occupancy rate. These trends suggest that as the renter population grew, albeit modestly, there was a corresponding increase in rental prices, potentially reflecting increased demand for rental properties.
In 2023 and 2024, the real estate market in zip code 62447 continued its upward trajectory. The average home price in 2023 reached $140,690, a significant jump from the previous year. This trend continued into 2024, with average home prices rising further to $147,420. Concurrently, federal interest rates increased substantially, reaching 5.02% in 2023 and 5.33% in 2024, marking a significant shift from the low-interest environment of previous years.
Looking ahead, based on the observed trends, we can project continued growth in both average home prices and rent prices for zip code 62447 over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $170,000 to $180,000 by 2029. Similarly, average rent prices could increase to approximately $750 to $800 per month. However, these projections assume relatively stable economic conditions and no major disruptive events.
In summary, zip code 62447 has demonstrated a resilient housing market with steadily increasing property values and a slight shift towards more renters. The area has maintained a high homeownership rate despite rising home prices and recent increases in interest rates. The coming years are likely to see continued growth in both home values and rental prices, reflecting the area's stable and gradually appreciating real estate market.
