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Zip Code 62535: Rising Home Values and High Ownership Rates in Forsyth, 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 62535, located in Forsyth, Illinois, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This area has seen a general trend of increasing homeownership rates, with average home prices steadily rising and average rent prices showing volatility.
The ownership percentage in zip code 62535 has shown a strong upward trend, particularly in recent years. In 2013, the homeownership rate was 86%, which increased to 90% by 2022. This rise in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $193,483, and by 2022, it had risen to $256,029, representing a 32.3% increase over this period. The relationship between homeownership rates and average home prices appears to be positive, with both trending upwards despite the substantial increase in housing costs.
Federal interest rates have played a role in shaping homeownership trends in this zip code. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, between 86% and 89%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in the zip code actually increased to 90%. This suggests that other local factors may have had a stronger influence on homeownership than national interest rates in this particular area.
Renter percentages in zip code 62535 have shown an inverse relationship to homeownership rates, naturally decreasing as homeownership increased. The renter population dropped from 16% in 2019 to 10% in 2022. Interestingly, average rent prices have been volatile during this period. In 2013, the average rent was $1,285, which peaked at $1,754 in 2017 before declining to $1,443 in 2022. This volatility in rent prices doesn't seem to correlate strongly with the steady decrease in the renter population, suggesting that other factors, such as local economic conditions or housing supply, may be influencing rent prices more significantly.
In 2023 and 2024, average home prices in zip code 62535 continued their upward trajectory. The average home price reached $266,472 in 2023 and further increased to $277,716 in 2024, representing a 4.2% year-over-year growth. This rise occurred despite a significant increase in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates have not yet appeared to dampen the local housing market's growth in this zip code.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 62535 are likely to continue rising over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices may stabilize or show modest increases as the rental market adjusts to the smaller renter population. However, local economic factors and housing supply changes could significantly influence these projections.
In summary, zip code 62535 has demonstrated a strong trend towards increased homeownership, with average home prices rising consistently despite fluctuations in interest rates. The rental market has shown more volatility, with decreasing renter percentages and variable rent prices. The area's resilience in maintaining growth in both homeownership rates and home values, even in the face of rising interest rates, suggests a robust local housing market with potential for continued growth in the coming years.
