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Bloomington, Illinois: Home Values and Ownership Trends in a Growing Prairie State City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Bloomington, Illinois, a vibrant city in the heart of the Prairie State, is known for its educational institutions and thriving economy. With a population of 78,874 in 2022, Bloomington has experienced interesting shifts in homeownership rates and housing costs over the past decade. The city has seen a general trend of stable homeownership rates, while average home prices and average rent have shown notable increases.
The homeownership rate in Bloomington has remained relatively steady, with some fluctuations. In 2013, the homeownership rate was 63%, which dipped to 60% in 2014 and remained at that level through 2016. There was a slight increase to 63% in 2017, followed by a decline to 58% in 2019, the lowest point in the dataset. However, the rate rebounded to 61% by 2022. Interestingly, these changes in homeownership rates don't always directly correlate with average home prices. The average home price in Bloomington rose from $167,171 in 2013 to $218,861 in 2022, representing a 31% increase over this period. This suggests that factors beyond just home prices, such as local economic conditions and housing supply, influence homeownership rates.
Federal interest rates play a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.09% to 0.4%), homeownership rates in Bloomington remained stable at around 60-63%. As interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed some volatility but ultimately remained within a similar range. This suggests that while interest rates influence homeownership, local factors in Bloomington may have helped maintain relatively stable ownership rates despite national economic shifts.
Renter percentages in Bloomington have shown an inverse relationship to homeownership rates, naturally. The renter-occupied percentage increased from 37% in 2013 to a peak of 42% in 2019, before settling at 39% in 2022. Average rent prices have generally increased during this period, rising from $768 in 2013 to $965 in 2022, a 26% increase. This upward trend in rent prices, coupled with the city's population growth from 78,911 in 2013 to 78,874 in 2022, suggests a steady demand for rental properties in Bloomington.
In 2023 and 2024, Bloomington's housing market continued its upward trajectory. The average home price reached $230,358 in 2023 and further increased to $241,186 in 2024, representing a substantial rise from previous years. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, marking a significant increase from the near-zero rates of the early 2020s. These higher interest rates may impact future homebuying decisions and affordability in the Bloomington market.
Looking ahead, predictive models suggest that Bloomington's housing market will likely continue its upward trend over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $280,000 by 2029. Average rent prices are expected to follow a similar trajectory, possibly surpassing $1,100 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Bloomington's housing market has demonstrated resilience and growth over the past decade. Despite fluctuations in homeownership rates, the city has seen consistent increases in both average home prices and average rent. The relationship between federal interest rates and local housing trends highlights the complex interplay of national and local economic factors. As Bloomington continues to grow and evolve, its housing market is poised for further appreciation, presenting both opportunities and challenges for residents and potential homebuyers in the coming years.
