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Zip Code 62644: Havana, Illinois Home Values and Ownership Trends Near the Illinois River
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 62644, located in Havana, Illinois, has experienced notable shifts in its housing market over the past decade. This area, spanning 89.36 square miles, has seen fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 62644 has shown resilience and growth, increasing from 70% in 2020 to 77% in 2022. This upward trend in homeownership coincides with changes in average home prices. In 2012, the average home price was $68,969, rising to a peak of $87,696 in 2015. After a period of decline, prices rebounded, reaching $82,947 in 2022. This represents a significant 20.3% increase in average home prices over the decade, despite some fluctuations.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2012 to 2015, when homeownership rates were relatively stable and home prices were rising, coincided with historically low interest rates (0.14% in 2012 to 0.13% in 2015). As interest rates began to rise more significantly from 2016 onwards, we see a slight dip in homeownership rates in 2016 (71%) before they rebounded and continued to grow. This suggests that despite rising interest rates, other factors were supporting homeownership in the area.
Renter percentages in zip code 62644 have shown an inverse relationship to homeownership rates, decreasing from 30% in 2020 to 23% in 2022. Interestingly, average rent prices have increased substantially over the years, from $503 in 2013 to $716 in 2022, representing a 42.3% increase. This rise in rent prices occurred despite a declining population, which fell from 4,715 in 2010 to 4,337 in 2022. The increase in rent prices, coupled with declining renter percentages, suggests a tightening rental market with potentially higher-quality or more desirable rental properties commanding premium prices.
In 2023, the average home price in zip code 62644 decreased to $77,240, a 6.9% drop from the previous year. This decline occurred as federal interest rates rose sharply to 5.02%. Moving into 2024, we see a slight recovery in average home prices to $80,922, despite a further increase in interest rates to 5.33%. This resilience in home prices, even in the face of high interest rates, suggests underlying strength in the local housing market.
Looking ahead, predictive models suggest a potential stabilization in both home prices and rent prices over the next five years. Average home prices are forecasted to grow moderately, potentially reaching around $85,000 to $90,000 by 2029. Rent prices are expected to continue their upward trajectory, albeit at a slower pace, potentially reaching $750 to $800 per month in the same timeframe.
In summary, zip code 62644 has demonstrated a robust housing market characterized by increasing homeownership rates and resilient home prices. Despite population decline, both home and rent prices have shown significant growth over the past decade. The area has weathered fluctuations in federal interest rates and maintained a strong preference for homeownership. As we move forward, the housing market in this zip code appears poised for steady, moderate growth in both the ownership and rental sectors.
