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Zip Code 62877: Rural Illinois Community Sees Surge in Home Ownership and 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 62877, located in Richview, Illinois, has experienced significant shifts in its housing market over the past decade. This rural area has seen notable changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local demographic shifts.
The ownership percentage in zip code 62877 has shown a steady increase from 2013 to 2022. In 2013, homeownership stood at 76%, rising consistently to reach 89% by 2022. This substantial increase of 13 percentage points over nine years indicates a strong trend towards homeownership in the area. Concurrently, average home prices have also seen an upward trajectory. From 2016 to 2022, average home prices rose from $92,055 to $119,216, representing a 29.5% increase. This parallel growth in homeownership rates and average home prices suggests a robust local housing market with increasing demand for owned properties.
The trend in homeownership rates appears to have been influenced by federal interest rates. As interest rates remained historically low between 2013 and 2021, ranging from 0.08% to 1.83%, homeownership in the area continued to climb. This correlation aligns with the general economic principle that lower interest rates make mortgages more affordable, encouraging home buying. The sharp increase in homeownership from 84% in 2019 to 90% in 2021 coincides with the period of extremely low interest rates (0.38% in 2020 and 0.08% in 2021), further supporting this relationship.
Conversely, the percentage of renters in zip code 62877 has steadily decreased from 24% in 2013 to 11% in 2022. This decline in renters corresponds with fluctuating average rent prices. The average rent peaked at $1,350 in 2018 before declining to $809 in 2022. Interestingly, despite the decreasing renter population, average rent prices did not consistently fall, suggesting other factors such as housing quality or local economic conditions may be influencing rent levels. The overall population decrease from 581 in 2013 to 417 in 2022 may have also impacted the rental market dynamics.
In 2023 and 2024, the housing market in zip code 62877 showed some interesting developments. The average home price slightly decreased to $114,831 in 2023 but rebounded to $117,700 in 2024. This modest fluctuation occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates might typically be expected to cool the housing market, yet average home prices in this area have remained relatively stable.
Looking ahead, based on the historical data and current trends, we can forecast potential 5-year trends for average home and rent prices in zip code 62877. Average home prices are likely to continue their overall upward trajectory, potentially reaching around $130,000 to $135,000 by 2029, assuming a moderate annual growth rate of 2-3%. Average rent prices, which have been more volatile, may stabilize or see a slight increase, potentially reaching $850 to $900 per month by 2029, factoring in historical fluctuations and the area's decreasing renter population.
In summary, zip code 62877 has experienced a significant shift towards homeownership, with a corresponding increase in average home prices over the past decade. This trend has persisted even in the face of recent interest rate hikes, suggesting strong local demand for owned properties. The rental market, while shrinking, has shown resilience in maintaining rent levels despite population decline. These trends indicate a transforming housing landscape in this rural Illinois community, with a clear preference for homeownership emerging.
