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Zip Code 62844: Average Home Values and Ownership in Grayville, Illinois - A Decade of Housing Dynamics
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 62844, located in Grayville, Illinois, presents an interesting case study of housing trends in a small Midwestern community. Over the past decade, this area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 62844 has shown a general upward trend from 2013 to 2020, with a slight decline in recent years. In 2013, the homeownership rate was 73%, which increased steadily to reach 78% in 2017. This rate remained stable at 77% from 2018 to 2020 before decreasing slightly to 73% in 2021 and 2022. Concurrently, average home prices have shown significant volatility. From 2016 to 2017, average home prices decreased from $66,026 to $58,356, a drop of nearly 12%. However, prices rebounded strongly in subsequent years, reaching $76,999 in 2020, representing a 31% increase from 2017.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the expected trend. As interest rates remained low from 2013 to 2015 (ranging from 0.09% to 0.13%), homeownership rates increased from 73% to 76%. The slight increase in interest rates from 2016 to 2019 (0.4% to 2.16%) coincided with a stabilization of homeownership rates around 77-78%. The sharp drop in interest rates in 2020 to 0.38% may have contributed to maintaining the homeownership rate at 77% despite economic uncertainties.
Renter percentages in zip code 62844 have inversely mirrored the homeownership trends, decreasing from 27% in 2013 to 22% in 2017, before slightly increasing to 23% from 2018 to 2020, and then returning to 27% in 2021 and 2022. Average rent prices have shown a general upward trend, albeit with some fluctuations. In 2013, the average rent was $556, which decreased to $488 in 2015. However, rent prices then began to climb, reaching $607 in 2020 and $630 in 2021, representing a 29% increase from the 2015 low. This rise in rent prices occurred despite the population remaining relatively stable, fluctuating between 1,494 and 1,715 residents over the period.
In 2023 and 2024, average home prices in zip code 62844 continued to show volatility. The average home price increased to $77,050 in 2023, representing a 7% rise from 2022. However, in 2024, prices experienced a significant drop to $67,561, a decrease of about 12% from the previous year. This price decline coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024, potentially impacting home affordability and demand.
Looking ahead, based on the observed trends and current economic conditions, we can forecast potential 5-year trends for average home and rent prices in zip code 62844. Average home prices may experience moderate growth after the recent decline, potentially reaching around $80,000 by 2029, assuming economic conditions stabilize and interest rates moderate. Average rent prices are likely to continue their upward trajectory, potentially reaching $700-$750 per month by 2029, driven by ongoing demand for rental properties and general inflationary pressures.
In summary, zip code 62844 has demonstrated resilience in homeownership rates despite fluctuations in average home prices. The area has seen a general trend of increasing average rent prices, which may continue in the coming years. The recent volatility in home prices and the sharp rise in interest rates present challenges, but also opportunities for both homeowners and investors in this market.
