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Galena's Rising Home Values and Stable Ownership: A Decade of Real Estate Trends in a Historic Illinois 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
Galena, Illinois, a picturesque city nestled in the northwestern corner of the state, is known for its well-preserved 19th-century architecture and rich history. This charming city has experienced fluctuations in homeownership rates and housing prices over the past decade. From 2013 to 2022, Galena saw a slight increase in homeownership, while average home prices initially declined before showing a significant upward trend in recent years. Average rent prices have also varied, reflecting the city's dynamic real estate market.
The homeownership rate in Galena increased from 68% in 2013 to 73% in 2022. This upward trend coincided with fluctuations in average home prices. From 2013 to 2018, average home prices in Galena decreased from $186,821 to $172,575, a decline of 7.6%. However, the market began to rebound in 2019, with average home prices rising to $175,115. The most substantial increase occurred between 2020 and 2022, with average home prices surging from $180,706 to $263,824, a remarkable 46% increase in just two years.
Federal interest rates play a significant role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates likely contributed to the steady increase in homeownership in Galena. As interest rates began to rise in 2022 to 1.68%, the homeownership rate stabilized at 73%, suggesting that higher interest rates may have tempered further growth in homeownership.
The percentage of renters in Galena decreased from 29% in 2013 to 27% in 2022. This trend aligns with the increase in homeownership rates. Average rent prices fluctuated during this period, peaking at $866 in 2015 before declining to $757 in 2022. The population of Galena also experienced changes, decreasing from 4,366 in 2013 to 4,013 in 2019, before rebounding to 4,436 in 2022. These population shifts may have influenced the demand for rental properties and, consequently, rent prices.
In 2023 and 2024, Galena's real estate market continued to show strong growth. The average home price in 2023 reached $274,492, a 4% increase from 2022. In 2024, the average home price further increased to $292,253, representing a 6.5% rise from the previous year. This upward trend occurred despite the Federal interest rate reaching 5.02% in 2023 and 5.33% in 2024, significantly higher than in previous years.
Looking ahead, based on recent trends and current market conditions, it's projected that average home prices in Galena will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase moderately, reflecting the overall growth in the housing market and potential shifts in the local economy.
In summary, Galena has experienced a notable increase in homeownership rates and average home prices, particularly in recent years. The city's real estate market has shown resilience and growth, with average home prices reaching new highs in 2023 and 2024. While rental rates have declined slightly, the overall housing market in Galena appears robust, with potential for continued growth in both home prices and rent in the coming years.
