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Zip Code 62656: Lincoln's Resilient Housing Market Amid Rising 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 62656, located in Lincoln, Illinois, has experienced significant demographic and housing market changes over the past decade. This area, spanning 144.86 square miles, has seen fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 62656 has shown relative stability with some fluctuations. In 2013, the homeownership rate stood at 65%, increasing to 68% by 2017 and maintaining that level through 2019. However, there was a slight decrease to 65% in 2021, before rising again to 66% in 2022. Concurrently, average home prices have shown a general upward trend. From 2014 to 2022, average home prices increased from $92,916 to $108,292, representing a 16.5% increase over eight years.
The relationship between federal interest rates and homeownership rates in this area shows some correlation. For instance, the period from 2013 to 2017 saw relatively low interest rates (0.11% to 1%), coinciding with an increase in homeownership from 65% to 68%. However, as interest rates began to rise more sharply from 2018 onwards, homeownership rates remained stable at 68% until 2019, suggesting other local factors may have influenced housing decisions.
Renter percentages in zip code 62656 have inversely mirrored homeownership rates, naturally. The renter-occupied percentage decreased from 35% in 2013 to 32% in 2017, remaining steady until 2019. It then increased to 35% in 2021 before decreasing slightly to 34% in 2022. Average rent prices have generally increased over time, rising from $580 in 2013 to $717 in 2022, a 23.6% increase. This trend occurred despite a decrease in population from 20,499 in 2013 to 17,818 in 2022, suggesting that factors beyond population growth, such as housing supply and local economic conditions, influenced rent prices.
In 2023 and 2024, the housing market in zip code 62656 continued to evolve. The average home price increased to $112,386 in 2023 and further to $115,215 in 2024, representing a 6.4% increase from 2022 to 2024. This growth occurred alongside a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability in the area.
Looking ahead, predictive models suggest a continuation of the upward trend in both average home prices and rent prices over the next five years. Average home prices are projected to increase by approximately 2-3% annually, potentially reaching around $130,000 by 2029. Average rent prices are expected to follow a similar trajectory, with an estimated annual increase of 1.5-2.5%, potentially surpassing $800 per month by 2029.
In summary, zip code 62656 has demonstrated resilience in its housing market despite population declines. The area has maintained relatively stable homeownership rates while experiencing moderate growth in both home values and rent prices. The interplay between federal interest rates, local economic factors, and housing market dynamics will continue to shape the area's real estate landscape in the coming years.
