Loading Content...
Chillicothe's Rising Home Values and Ownership Rates: A Decade of Growth Along the Illinois River
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Chillicothe, Illinois, is a small city located in Peoria County with a population of 6,214 as of 2022. This Midwest community has experienced significant changes in homeownership rates and housing prices over the past decade. The city has seen a general trend of increasing homeownership, rising average home prices, and fluctuating average rent prices.
The homeownership rate in Chillicothe has shown a notable upward trend, particularly in recent years. In 2013, 73% of residents owned their homes. This figure dipped slightly to 69% in 2015 and 2016 but has since rebounded strongly. By 2022, the homeownership rate reached an impressive 81%. This increase in homeownership coincides with a general upward trend in average home prices. In 2013, the average home price was $119,972. After some fluctuations, it rose to $143,334 in 2022, representing a 19.5% increase over this period.
The relationship between federal interest rates and homeownership rates in Chillicothe presents an interesting dynamic. Despite the Federal Reserve raising interest rates from near-zero levels in 2015 to 1.83% in 2018, Chillicothe's homeownership rate continued to climb. This suggests that local factors, such as job market conditions or housing supply, may have played a more significant role in driving homeownership than national interest rates during this period.
Renter percentages in Chillicothe have correspondingly decreased as homeownership has risen. In 2013, 27% of residents were renters, which increased to 31% in 2015 and 2016. However, by 2022, the renter percentage had fallen to just 19%. Interestingly, average rent prices have shown an overall upward trend despite the declining renter population. The average rent was $630 in 2013, rose to $882 in 2019, and then slightly decreased to $880 in 2022. This suggests that despite fewer renters, demand for rental properties remains strong, possibly due to factors such as limited rental inventory or increasing property values.
Looking at the most recent data, average home prices in Chillicothe continued their upward trajectory, reaching $147,656 in 2023 and climbing further to $156,796 in 2024. This represents a substantial 9.4% increase from 2022 to 2024. Meanwhile, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, Chillicothe's housing market has remained robust.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Chillicothe will continue to rise, potentially reaching around $180,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the recent acceleration in price growth. For average rent prices, we expect a more moderate increase, potentially reaching around $950 per month by 2029, assuming the current balance between housing demand and supply remains relatively stable.
In summary, Chillicothe has experienced a significant increase in homeownership rates over the past decade, rising from 73% in 2013 to 81% in 2022. This trend has occurred alongside a steady increase in average home prices, which have risen from $119,972 in 2013 to $156,796 in 2024. Despite rising federal interest rates, the local housing market has remained strong, suggesting the influence of positive local economic factors. The rental market has seen a decrease in the percentage of renters but an overall increase in average rent prices, indicating a complex interplay of supply and demand factors in the local housing ecosystem.
