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Zip Code 62530: Rising Home Values and Ownership Trends in Divernon, 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 62530, encompassing Divernon in Illinois, presents an intriguing case study of housing market dynamics in a small Midwestern community. This area has experienced notable fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local demographic shifts.
The homeownership rate in zip code 62530 has shown a general upward trend, increasing from 73% in 2014 to 79% in 2022. This rise in homeownership coincided with a steady increase in average home prices, which grew from $106,945 in 2014 to $126,197 in 2022, representing an 18% increase over eight years. The correlation between rising homeownership rates and increasing home prices suggests a growing demand for property ownership in the area, possibly driven by favorable economic conditions or changes in local amenities.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 62530. The period from 2014 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%, which likely contributed to the increase in homeownership from 73% to 77% during this time. As interest rates began to rise in 2022 to 1.68%, the homeownership rate continued to climb to 79%, possibly due to residents rushing to secure mortgages before rates increased further.
The rental market in zip code 62530 has experienced inverse trends to homeownership. The percentage of renters decreased from 27% in 2014 to 21% in 2022. Interestingly, average rent prices have shown significant volatility, dropping from $866 in 2014 to a low of $609 in 2017, before rising sharply to $936 in 2022. This 54% increase in average rent from 2017 to 2022 occurred despite a declining renter population, suggesting potential supply constraints or improvements in rental property quality.
In 2023 and 2024, the housing market in zip code 62530 continued to evolve. Average home prices reached $128,032 in 2023 and further increased to $132,187 in 2024, marking a 4.7% rise over two years. This growth occurred against a backdrop of significantly higher federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher rates typically make borrowing more expensive, yet the continued rise in home prices suggests sustained demand in the area.
Looking ahead, predictive models forecast a continued upward trajectory for both average home prices and rent in zip code 62530 over the next five years. Home prices are projected to increase by approximately 2-3% annually, potentially reaching around $150,000 by 2029. Average rent prices are expected to follow a similar trend, with potential increases of 3-4% per year, possibly surpassing $1,100 per month by 2029.
In summary, zip code 62530 has demonstrated a robust trend towards homeownership, with rising property values and a shrinking rental market. The area has shown resilience in the face of increasing interest rates, maintaining growth in home prices. The interplay between homeownership rates, property values, and rental market dynamics presents a complex picture of a local housing market adapting to broader economic forces and changing resident preferences.
