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Zip Code 62463: High Homeownership and Fluctuating Home Values in Stewardson, 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 62463, located in Stewardson, Illinois, presents an intriguing case study of homeownership and rental trends in a small Midwestern community. Over the past decade, this area has maintained a consistently high rate of homeownership, while experiencing fluctuations in average rent prices and a recent uptick in average home values.
The homeownership rate in zip code 62463 has remained relatively stable, hovering around 85% from 2013 to 2019. However, there was a notable increase in 2020, with the ownership percentage rising to 89%. This upward trend continued into 2022, with 88% of residents owning their homes. Despite the lack of historical average home price data, the stability in homeownership rates suggests a strong preference for owning rather than renting in this community.
Examining the relationship between federal interest rates and homeownership rates reveals some interesting patterns. The period from 2013 to 2015 saw relatively low interest rates (0.11% to 0.13%) coinciding with a steady homeownership rate of 85%. As interest rates began to rise from 2016 to 2019 (0.4% to 2.16%), homeownership rates remained stable. Interestingly, the significant drop in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with an increase in homeownership to 89% and 88% respectively, supporting the notion that lower interest rates can encourage homeownership.
Rental trends in zip code 62463 show some volatility over the years. The percentage of renters fluctuated between 11% and 16% from 2013 to 2022. Average rent prices experienced significant changes, starting at $785 in 2013, declining to a low of $489 in 2017, and then rebounding to $754 in 2021 before dropping again to $603 in 2022. These fluctuations in rent prices don't seem to have a clear correlation with the relatively stable renter percentages, suggesting that other factors, such as local economic conditions or housing supply, may be influencing rental markets in this area.
Looking at the most recent data, the average home price in zip code 62463 for 2024 is $155,194. This figure, combined with the current federal interest rate of 5.33% in 2024, indicates a potentially challenging environment for new homebuyers. The relatively high interest rate compared to the historically low rates of the previous decade may impact affordability and could potentially influence future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we can anticipate some changes in the housing market for zip code 62463. Average home prices are likely to continue their upward trajectory, potentially reaching around $170,000 to $180,000 by 2029, assuming a moderate annual appreciation rate. Rent prices may also see a gradual increase, potentially returning to the $700-$800 range seen in earlier years, depending on local economic factors and housing demand.
In summary, zip code 62463 demonstrates a robust homeownership market with consistently high rates of owner-occupied housing. The community has shown resilience in maintaining these high ownership levels despite fluctuations in interest rates and economic conditions. While rental prices have shown volatility, they haven't significantly impacted the overall preference for homeownership in the area. The recent increase in average home prices and higher interest rates may present new challenges for potential homebuyers, but the strong culture of homeownership in this zip code suggests that demand for owned properties is likely to remain strong in the coming years.
