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Belleville, Illinois: Rising Home Values and Ownership Rates Amid Interest Rate Fluctuations
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
Belleville, Illinois, a city in St. Clair County, has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices in Belleville, providing insights into the city's real estate dynamics. Homeownership in Belleville has shown resilience, with the percentage of owner-occupied homes fluctuating between 64% and 68% from 2013 to 2022. The city saw a slight dip in homeownership from 67% in 2013 to 64% in 2016, but it has since rebounded, reaching 68% in 2022. This trend coincides with changes in average home prices, which have experienced significant growth over the same period. In 2013, the average home price in Belleville was $85,809, and it steadily increased to reach $127,367 by 2022, representing a substantial 48.4% increase over nine years.
The relationship between federal interest rates and homeownership rates in Belleville follows a generally expected pattern. As interest rates remained low from 2013 to 2016, hovering around 0.1% to 0.4%, homeownership rates experienced a slight decline. However, as interest rates began to rise gradually from 2017 to 2019, reaching 2.16% in 2019, homeownership rates stabilized around 64-65%. Interestingly, despite the sharp drop in interest rates to 0.08% in 2021, homeownership rates continued to climb, reaching 66% in 2021 and 68% in 2022, possibly indicating other factors influencing homebuying decisions in Belleville.
Renter percentages in Belleville have inversely mirrored homeownership trends, ranging from 32% to 36% between 2013 and 2022. The city experienced a peak in renter-occupied housing at 36% from 2016 to 2018, coinciding with a period of relatively stable average rent prices. Average rent in Belleville increased from $899 in 2013 to $933 in 2017, before slightly decreasing to $883 in 2019. However, rent prices rebounded, reaching $973 in 2021 before settling at $921 in 2022. This fluctuation in rent prices, coupled with the city's decreasing population from 64,664 in 2013 to 62,307 in 2022, suggests a complex interplay between housing demand and demographic changes.
Looking at more recent data, the average home price in Belleville continued its upward trajectory, reaching $136,266 in 2023 and $137,754 in 2024. This represents a 7% increase from 2022 to 2023 and a further 1.1% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability in the city.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Belleville will continue to rise, albeit at a more moderate pace. By 2029, average home prices could potentially reach around $150,000 to $160,000, assuming a continuation of current economic conditions and local market factors. Average rent prices are also expected to increase, potentially reaching $1,000 to $1,100 per month by 2029, reflecting ongoing demand for rental properties and overall inflation trends.
In summary, Belleville's housing market has demonstrated resilience and growth over the past decade. The city has maintained a strong base of homeowners, with ownership rates trending upward in recent years despite fluctuations in interest rates. Average home prices have shown consistent appreciation, while rent prices have experienced more variability. These trends, coupled with the city's changing demographics, paint a picture of a dynamic real estate market that continues to evolve in response to both local and broader economic factors.
