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Burlington, Illinois: Rising Home Values and Strong Ownership in a Small Community
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
Burlington, Illinois, a small community in Kane County with a population of 2,157 in 2022, has experienced significant changes in its housing market over the past decade. This quaint village has maintained a strong preference for homeownership, with rates consistently above 80% throughout the observed period. The trend in homeownership has shown remarkable resilience, increasing from 80% in 2016 to 86% in 2022. This upward trend coincides with a substantial rise in average home prices, which increased from $233,054 in 2016 to $337,271 in 2022, representing a 44.7% increase over six years. This positive correlation suggests that despite rising home values, residents of Burlington have maintained a strong desire for homeownership.
The relationship between federal interest rates and homeownership rates in Burlington appears to follow the general trend of lower interest rates encouraging homeownership. As interest rates remained low between 2016 and 2021 (ranging from 0.4% to 1.68%), homeownership rates in the village remained high, hovering around 80-83%. The slight increase in homeownership to 86% in 2022, despite a rise in interest rates to 1.68%, indicates a strong local preference for owning homes regardless of moderate interest rate fluctuations.
Conversely, the renter population in Burlington has seen a slight decrease, from 20% in 2016 to 14% in 2022. Average rent prices have shown some volatility during this period, peaking at $1,301 in 2017 before declining to $962 in 2022, representing a 26% decrease. This drop in average rent prices, coupled with the decrease in the renter population, suggests that the rental market in Burlington may be adjusting to maintain affordability and attract tenants in a predominantly homeowner-oriented community.
In 2023 and 2024, Burlington has continued to see growth in average home prices. The average home price reached $351,130 in 2023 and further increased to $369,383 in 2024, representing a 5.2% year-over-year increase. This upward trend has occurred despite the Federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, indicating a robust local housing market that remains attractive to buyers even in a higher interest rate environment.
Looking ahead, predictive models suggest that the upward trend in average home prices in Burlington is likely to continue over the next five years, albeit at a potentially slower pace due to higher interest rates. Average home prices could potentially reach around $400,000 by 2029 if the current trajectory persists. Rent prices, which have shown more volatility, may stabilize or see modest increases, potentially reaching an average of $1,100-$1,200 per month by 2029, assuming economic conditions remain stable and the village maintains its appeal to residents.
In summary, Burlington has demonstrated a strong preference for homeownership, with rates increasing even as home prices have risen substantially. The community has shown resilience in maintaining high homeownership rates despite fluctuations in interest rates and housing costs. The rental market, while smaller, has seen some adjustments in pricing to remain competitive. As the village continues to grow and evolve, it is likely to maintain its character as a predominantly owner-occupied community with a stable, if smaller, rental sector.
