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Zip Code 62677: High Homeownership and Rising Home Values in Pleasant Plains, 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 62677, encompassing Pleasant Plains in Illinois, presents an interesting case study in homeownership and housing market trends. This rural area has maintained a consistently high rate of owner-occupied housing, with an average of 87% throughout the available data period. The average home prices and average rent prices have shown notable fluctuations over the years, reflecting broader economic trends and local market conditions.
The ownership percentage in zip code 62677 has remained relatively stable, ranging from 86% to 89% between 2013 and 2022. During this period, average home prices have shown a steady upward trend. In 2013, the average home price was $141,062, which increased to $194,656 by 2022, representing a significant 38% growth over nine years. This rise in home values did not appear to significantly impact homeownership rates, suggesting a strong preference for homeownership in this community regardless of price increases.
Federal interest rates have played a role in homeownership trends, although the impact seems less pronounced in this zip code due to the already high ownership rates. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates remained steady at 86% in 2020 and increased slightly to 89% in 2021. This slight increase could be attributed to more favorable borrowing conditions, allowing some renters to transition to homeownership.
The renter percentage in zip code 62677 has fluctuated between 11% and 14% from 2013 to 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $800, which rose to a peak of $1,029 in 2019, before declining to $736 in 2022. This represents a 28% increase from 2013 to 2019, followed by a 28.5% decrease from 2019 to 2022. The fluctuations in rent prices do not appear to have a strong correlation with the renter percentage, which remained relatively stable despite these price changes.
In 2023 and 2024, the average home prices in zip code 62677 continued their upward trajectory, reaching $211,924 in 2023 and $218,608 in 2024. This represents a 9% increase from 2022 to 2023, and a further 3.2% increase from 2023 to 2024. Notably, these price increases occurred despite rising interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, indicating strong demand for housing in this area.
Looking ahead, based on the historical data and current trends, we can expect average home prices in zip code 62677 to continue their upward trajectory over the next five years. Projecting the current growth rate, average home prices could potentially reach around $250,000 by 2029. Average rent prices, which have shown more volatility, may stabilize and gradually increase, potentially reaching around $900 per month by 2029, assuming economic conditions remain favorable and local demand persists.
In summary, zip code 62677 demonstrates a robust housing market characterized by high homeownership rates and steadily increasing average home values. Despite fluctuations in average rent prices and rising interest rates, the community has maintained a strong preference for homeownership. The continued rise in home values, even in the face of higher interest rates, suggests ongoing demand for housing in this area, which is likely to sustain the upward trend in both home prices and rents in the coming years.
