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Zip Code 62536: Chatham's High Homeownership and Rising Average Home Values
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 62536, located in Chatham, Illinois, presents an interesting case study in homeownership and housing market dynamics. This area has experienced notable fluctuations in both ownership rates and housing prices over the past decade, with a general trend towards increased homeownership and rising property values.
The ownership percentage in zip code 62536 has shown remarkable resilience and growth, increasing from 87% in 2017 to 91% in 2022. This upward trend in homeownership coincides with a significant increase in average home prices. In 2017, the average home price was $198,315, which steadily rose to $244,600 by 2022, representing a 23.3% increase over five years. This positive correlation suggests that rising property values have not deterred homeownership in the area, possibly indicating strong local economic conditions and confidence in the real estate market.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 62536. The period from 2017 to 2020 saw relatively low interest rates, ranging from 1% to 2.16%, which likely contributed to the high homeownership rates observed during this time. The exceptionally low rate of 0.08% in 2021 coincided with a peak in homeownership at 95%, demonstrating how favorable financing conditions can stimulate home buying activity.
Renter percentages in zip code 62536 have remained relatively low, fluctuating between 5% and 9% from 2017 to 2022. Interestingly, average rent prices have shown significant volatility during this period. In 2017, the average rent was $574, which increased dramatically to $980 in 2019, then to $1,011 in 2020, before surging to $1,367 in 2021. However, it returned to $1,011 in 2022. This volatility in rent prices, particularly the sharp increase in 2021, may be attributed to limited rental inventory in an area with high homeownership rates and possibly increased demand due to population growth from 435 in 2019 to 605 in 2021.
Looking at the most recent data, average home prices in zip code 62536 continued to rise, reaching $261,056 in 2023 and $262,698 in 2024. This represents a 7.4% increase from 2022 to 2024, indicating sustained growth in the local real estate market. However, it's important to note that federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 62536 will continue to rise, albeit at a more moderate pace. Based on the historical data and current market conditions, we project average home prices to reach approximately $290,000 to $300,000 by 2029. For rent prices, considering the historical volatility, we expect a more stabilized growth, potentially reaching an average of $1,200 to $1,300 per month by 2029.
In summary, zip code 62536 has demonstrated a strong trend towards homeownership, with ownership rates consistently above 87% since 2017. The area has experienced substantial growth in average home prices, rising from $198,315 in 2017 to $262,698 in 2024. Despite fluctuations in rent prices and recent increases in interest rates, the local housing market appears robust. The interplay between homeownership rates, housing prices, and economic factors will continue to shape the real estate landscape in this Illinois community in the coming years.
