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Zip Code 62625: High Homeownership and Rising Home Values in Cantrall, 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 62625, located in Cantrall, Illinois, showcases a unique housing market characterized by high homeownership rates and fluctuating property values. This area has maintained a consistently high percentage of owner-occupied homes, while experiencing notable changes in average home prices and rent over the past decade.
The homeownership rate in zip code 62625 has remained remarkably stable, hovering around 95% from 2013 to 2022. This high rate of ownership persisted despite significant variations in average home prices. In 2016, the average home price was $194,834, which steadily increased to $257,205 by 2022, representing a 32% increase over six years. This trend suggests that despite rising home values, residents in this area have maintained their ability and preference to own rather than rent.
Federal interest rates have played a role in supporting high homeownership rates in this zip code. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. These low rates likely contributed to the sustained high homeownership by making mortgages more affordable. Even as interest rates began to rise in 2022 to 1.68%, the homeownership rate in the area remained steady at 95%, indicating a strong local preference for homeownership regardless of financing costs.
The rental market in zip code 62625 has been characterized by low occupancy rates and increasing average rents. The percentage of renters decreased from 5% in 2013 to just 2% in 2019, before slightly increasing to 5% in 2022. Despite the low renter population, average rent prices showed an upward trend, rising from $598 in 2013 to $799 in 2022, a 33.6% increase. This increase in rent occurred even as the area's population fluctuated, dropping from 882 in 2013 to 832 in 2022, suggesting that factors other than population growth were driving rent prices.
In 2023 and 2024, the housing market in zip code 62625 continued its upward trajectory. The average home price reached $277,011 in 2023 and further increased to $284,815 in 2024, representing a 10.7% rise from 2022 to 2024. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, predictive models suggest a continued increase in both average home prices and rent over the next five years. Home prices are projected to maintain their upward trend, potentially reaching around $320,000 by 2029. Average rent prices are expected to follow a similar pattern, potentially exceeding $900 per month within the same timeframe. These projections assume continued economic stability and sustained demand in the area.
In summary, zip code 62625 demonstrates a robust homeownership market with consistently high ownership rates despite rising property values. The area has shown resilience to changes in federal interest rates and maintained its strong preference for homeownership. While the rental market is small, it has seen significant price increases. The recent surge in home values and federal interest rates in 2023 and 2024 suggests a dynamic market that continues to evolve, with expectations of further growth in both home prices and rents in the coming years.
