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Bellevue, Illinois: Rising Home Values and Declining Ownership Rates
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
Bellevue, Illinois, is a small community that has experienced fluctuations in population and housing dynamics over the past decade. The city has seen a gradual shift in homeownership rates and significant changes in average home prices and rent values, reflecting broader economic trends and local market conditions.
The homeownership rate in Bellevue has shown a declining trend from 2013 to 2022. In 2013, 79% of housing units were owner-occupied, but this figure decreased to 70% by 2022. Conversely, the average home prices have generally increased during this period. In 2013, the average home price was $65,234, and it rose to $83,042 by 2022, representing a 27.3% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Bellevue. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1-0.4%. During this period, homeownership rates remained relatively stable, ranging from 77-79%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply, falling from 76% in 2017 to 70% in 2022. This trend aligns with the general principle that lower interest rates encourage homeownership due to more affordable financing options.
As homeownership rates decreased, the percentage of renters in Bellevue increased from 21% in 2013 to 30% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. The average rent peaked at $825 in 2018 but then declined to $637 by 2022. This decrease in average rent, despite the increase in the renter population, could be attributed to various factors such as increased housing supply or economic pressures affecting the local rental market.
In 2023 and 2024, Bellevue experienced further increases in average home prices, reaching $86,549 in 2023 and $91,673 in 2024. This represents a significant jump of 10.4% from 2022 to 2024. Concurrently, federal interest rates rose dramatically to 5.02% in 2023 and 5.33% in 2024, potentially impacting homeownership affordability and market dynamics.
Looking ahead, predictive models suggest that average home prices in Bellevue may continue to rise over the next five years, potentially reaching around $105,000 by 2029. This projection is based on the historical growth rate and recent market trends. Average rent prices, which have been more volatile, are expected to stabilize and potentially increase moderately, possibly reaching $700-$750 per month by 2029.
In summary, Bellevue has experienced a notable decrease in homeownership rates coinciding with rising average home prices and fluctuating rent values. The inverse relationship between homeownership rates and property values, coupled with the impact of changing federal interest rates, highlights the complex interplay of factors affecting the local housing market. As the community moves forward, these trends suggest a continuing shift in housing dynamics, with potential implications for affordability and community composition.
