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Zip Code 62521: Rising Home Values and Stable Ownership in Decatur's Agricultural Hub
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 62521, located in Decatur, Illinois, presents an interesting case study of housing trends in a mid-sized Midwestern city. Over the past decade, this area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 62521 has remained relatively stable, hovering around 72% from 2013 to 2022. However, there have been slight variations, with the rate reaching a low of 70% in 2019 and a high of 73% in 2021. Interestingly, these changes in homeownership rates have not always directly correlated with average home prices. For instance, while the homeownership rate dipped to 70% in 2019, the average home price actually increased from $75,854 in 2018 to $80,406 in 2019, a jump of nearly 6%.
Federal interest rates have played a role in shaping homeownership trends in zip code 62521. The period from 2013 to 2015 saw historically low interest rates, ranging from 0.11% to 0.13%. During this time, homeownership rates remained steady at 72%, suggesting that other factors, such as local economic conditions, may have had a stronger influence on housing decisions. As interest rates began to rise from 2016 onwards, reaching 2.16% in 2019, we saw a slight dip in homeownership to 70%. However, the relationship is not always straightforward, as evidenced by the increase in homeownership to 73% in 2021 despite rising interest rates.
Renter percentages in zip code 62521 have generally mirrored homeownership rates, with the proportion of renters ranging from 27% to 30% between 2013 and 2022. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $856, which decreased to $785 in 2015 before gradually rising to $926 in 2021. Interestingly, 2022 saw a slight decrease in average rent to $841, despite a marginal increase in the renter population from 27% to 28%. This could be attributed to various factors, including changes in housing supply or local economic conditions.
Looking at the most recent data, average home prices in zip code 62521 have continued to rise, reaching $96,762 in 2023 and $103,024 in 2024. This represents a significant increase from previous years, with a jump of over 10% from 2022 to 2023 and another 6.5% increase from 2023 to 2024. Concurrently, federal interest rates have also risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 62521 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $125,000 to $130,000, assuming a conservative annual growth rate of 4-5%. Average rent prices are also expected to increase, potentially reaching $1,000 to $1,100 per month by 2029, based on historical trends and accounting for inflation and housing demand.
In summary, zip code 62521 has maintained a relatively stable housing market over the past decade, with homeownership rates remaining consistently high. The area has seen gradual increases in both average home prices and average rent prices, with some fluctuations reflecting broader economic trends. The recent sharp rise in home prices and interest rates suggests a shifting landscape that may impact future housing affordability and ownership patterns in this Decatur zip code.
