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Zip Code 62520: Rising Home Values and High Ownership Rates in Dawson, 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 62520, encompassing Dawson in Illinois, presents an interesting case study of homeownership and housing market trends. This rural area has experienced significant fluctuations in population and housing dynamics over the past decade, with a general trend towards increased homeownership and rising property values.
The homeownership rate in zip code 62520 has shown a steady increase from 83% in 2013 to 86% in 2022, indicating a strong preference for owner-occupied housing in the area. This trend coincides with a substantial rise in average home prices, which grew from $134,962 in 2012 to $173,603 in 2022, representing a 28.6% increase over the decade. The relationship between homeownership rates and average home prices suggests that despite rising costs, residents in this area have maintained a strong desire and ability to purchase homes.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 62520. The period from 2012 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the increase in homeownership from 83% in 2013 to 85% in 2016. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate still managed to increase slightly to 86%, demonstrating the area's resilience in maintaining high levels of homeownership even in the face of potentially higher mortgage costs.
The rental market in zip code 62520 has experienced notable changes as well. The percentage of renters decreased from 17% in 2013 to 14% in 2022. However, average rent prices saw a substantial increase during this period, rising from $604 in 2013 to $910 in 2022, a 50.7% increase. This trend suggests that while fewer residents are renting, those who do are facing significantly higher costs. The population growth from 935 in 2013 to 1,047 in 2022 may have contributed to the upward pressure on rent prices, despite the decreasing proportion of renters.
Looking at the most recent data, average home prices in zip code 62520 continued their upward trajectory, reaching $197,600 in 2023 and $212,260 in 2024. This represents a remarkable 22.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen dramatically to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 62520 will continue to rise, potentially reaching around $250,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,100 per month in the same timeframe. These projections assume a continuation of current economic conditions and local market dynamics.
In summary, zip code 62520 has demonstrated a robust housing market characterized by increasing homeownership rates and rising property values. Despite escalating home prices and recent spikes in interest rates, the area has maintained a strong preference for owner-occupied housing. The rental market, while shrinking in terms of occupancy, has seen significant price increases. As the area continues to evolve, it will be crucial to monitor how these trends impact housing affordability and community dynamics in the coming years.
