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Collinsville, Illinois: Rising Home Values and Ownership Rates Amid Interest Rate Fluctuations
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
Collinsville, Illinois, is a vibrant city located in the southwestern part of the state. This suburban community, situated just across the Mississippi River from St. Louis, Missouri, has experienced interesting shifts in its housing market over the past decade. The city has seen a general trend of increasing homeownership rates, fluctuating average home prices, and varying average rent prices.
The homeownership rate in Collinsville has shown a notable upward trend over the years. In 2013, 62% of housing units were owner-occupied. This percentage steadily increased, reaching 69% in 2018, before slightly declining to 67% in 2022. Concurrently, average home prices in the city have experienced overall growth, albeit with some fluctuations. In 2013, the average home price was $109,181. It dipped slightly to $108,040 in 2014 before beginning a consistent upward trajectory. By 2022, the average home price had risen to $162,008, representing a substantial 48.4% increase over the 2013 figure.
The relationship between federal interest rates and homeownership rates in Collinsville follows a generally inverse pattern. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.40%), homeownership rates increased from 62% to 66%. The gradual rise in interest rates from 2017 to 2019 (1% to 2.16%) corresponded with a slight dip in homeownership rates, which fluctuated between 67% and 69%. Interestingly, the sharp drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) didn't immediately translate to higher homeownership rates, which remained stable at around 68%.
Renter percentages in Collinsville have generally declined as homeownership rates increased. In 2013, 37% of housing units were renter-occupied. This percentage decreased to 31% by 2018, before slightly increasing to 33% in 2022. Average rent prices have shown some volatility over this period. In 2013, the average rent was $916. It decreased to $801 in 2018, then rose sharply to $981 in 2020. By 2022, the average rent had decreased again to $835. These fluctuations in rent prices don't show a clear correlation with the declining renter percentages, suggesting that other factors, such as local economic conditions or housing supply, may have influenced renting patterns.
Looking at the most recent data, the average home price in Collinsville continued its upward trend, reaching $168,296 in 2023 and further increasing to $177,105 in 2024. This represents a 9.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, home prices have continued to rise, indicating strong demand in the local housing market.
Based on the historical data and current trends, we can project potential 5-year trends for average home and rent prices in Collinsville. If the current trajectory continues, average home prices could potentially reach around $220,000 to $230,000 by 2029. However, this growth may moderate if interest rates remain high or economic conditions change. For rent prices, the trend is less clear due to past fluctuations. A conservative estimate might place average rents between $900 and $1,100 by 2029, but this could vary significantly based on local economic factors and housing supply.
In summary, Collinsville has experienced a notable increase in homeownership rates over the past decade, accompanied by rising average home prices. Despite recent increases in interest rates, home prices have continued to climb, suggesting a robust local housing market. Renter percentages have generally declined, while rent prices have fluctuated. These trends indicate a shifting housing landscape in Collinsville, with a growing preference for homeownership and increasing property values.
