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Belvidere, Illinois: Home Values and Ownership in an Industrial City
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
Belvidere, Illinois, a city spanning 12.3 square miles, is known for its rich automotive history as the home of a major Chrysler assembly plant. Over the past decade, Belvidere has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Belvidere has shown fluctuations over the years, with a general trend towards stability. In 2013, the city boasted a 76% homeownership rate, which dipped to 71% in 2016 and remained steady until 2019. By 2022, the rate had rebounded to 76%, indicating a resilient housing market. Concurrently, average home prices in Belvidere have seen substantial growth. In 2013, the average home price was $108,320, which steadily increased to $204,090 by 2022, representing an impressive 88.4% increase over this period.
Federal interest rates have played a significant role in shaping homeownership trends in Belvidere. The period from 2013 to 2016, when homeownership rates decreased from 76% to 71%, coincided with a gradual increase in federal interest rates from 0.11% to 0.40%. As interest rates remained relatively low in subsequent years, homeownership rates stabilized and eventually rebounded. The low-interest-rate environment, particularly from 2020 to 2021 when rates were at 0.38% and 0.08% respectively, likely contributed to the recovery in homeownership rates to 76% by 2022.
Rental trends in Belvidere have mirrored the inverse of homeownership patterns. The percentage of renters increased from 24% in 2013 to 29% in 2016, coinciding with rising average rent prices. In 2013, the average rent was $826, which increased to $1,045 by 2016, a 26.5% jump. Rent prices continued to rise, reaching $1,052 by 2022, though the rate of increase slowed. The population remained relatively stable during this period, suggesting that the rental market dynamics were influenced more by economic factors than significant demographic shifts.
In 2023 and 2024, Belvidere's housing market continued its upward trajectory. The average home price rose to $213,359 in 2023 and further increased to $225,223 in 2024, representing a 10.4% increase over two years. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, indicating strong underlying demand in the local housing market.
Looking ahead, predictive models suggest that Belvidere's housing market will continue to appreciate, albeit at a potentially slower pace due to higher interest rates. Over the next five years, average home prices are projected to increase by approximately 15-20%, potentially reaching around $260,000 by 2029. Rent prices are expected to follow a similar trajectory, with an estimated increase of 10-15% over the same period, potentially bringing average rents to around $1,200 per month.
In summary, Belvidere's housing market has demonstrated remarkable resilience and growth over the past decade. The city has maintained a strong homeownership base while experiencing significant appreciation in both home values and rent prices. Despite rising interest rates, the market continues to show strength, suggesting a positive outlook for both homeowners and investors in the coming years. The balance between ownership and rental markets, coupled with steady population figures, indicates a stable and attractive housing environment in Belvidere.
