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Zip Code 62983: Declining Home Values and Ownership Rates in Royalton, 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 62983, located in Royalton, Illinois, presents an intriguing case study of homeownership and housing market trends. This area has experienced fluctuations in both ownership percentages and average home prices over the past decade, with a general trend towards decreasing homeownership and volatile housing prices.
The homeownership rate in zip code 62983 has shown a gradual decline from 2013 to 2022. In 2013, the area boasted a 79% homeownership rate, which remained relatively stable until 2019. However, a more significant drop occurred between 2019 and 2022, with the homeownership rate falling from 74% to 71%. This decline coincided with fluctuations in average home prices. The average home price peaked at $100,159 in 2015, then experienced a sharp decline to $80,630 by 2017. Despite a brief recovery to $97,675 in 2020, prices have since trended downward, reaching $81,048 in 2022.
Federal interest rates appear to have influenced homeownership rates in this area. The period of low interest rates from 2013 to 2016 (0.11% to 0.4%) coincided with stable homeownership rates around 79%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The renter population in zip code 62983 has inversely mirrored the homeownership trend, increasing from 21% in 2013 to 29% in 2022. Interestingly, average rent prices have remained relatively stable during this period, with some fluctuations. The average rent was $608 in 2013, peaked at $662 in 2015, and settled at $660 in 2022. This stability in rent prices, coupled with declining homeownership rates, suggests that renting may have become a more attractive or necessary option for residents in recent years.
In 2023 and 2024, the housing market in zip code 62983 has continued to evolve. The average home price decreased to $79,600 in 2023 and further dropped to $65,928 in 2024. This significant decline in home prices occurred despite a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This unusual combination of falling home prices and rising interest rates suggests unique local market conditions affecting housing demand in the area.
Looking ahead, predictive models suggest that average home prices in zip code 62983 may continue to decline over the next five years, potentially reaching around $60,000 by 2029 if the current trend persists. However, rent prices are expected to remain relatively stable, possibly increasing slightly to around $680 per month by 2029. These predictions are based on the historical trends observed in the area and assume no significant changes in local economic conditions or housing policies.
In summary, zip code 62983 has experienced a shift towards increased renting and decreased homeownership over the past decade. This trend has been accompanied by volatile home prices and relatively stable rent prices. The recent sharp decline in home prices, despite rising interest rates, indicates a complex local housing market that may continue to favor renters in the near future. These trends underscore the importance of monitoring local economic factors and housing policies that could influence the area's real estate landscape in the coming years.
