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Harrisburg's Housing Market: Resilient Homeownership Amid Rising Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Harrisburg, Illinois, a city spanning 6.61 square miles, has experienced notable shifts in its housing market over the past decade. This small Midwestern city, known for its rich coal mining history, has seen fluctuations in homeownership rates and housing prices that reflect broader economic trends and local dynamics.
The homeownership rate in Harrisburg has remained relatively stable, hovering around 70% for much of the past decade. In 2013, 69% of housing units were owner-occupied, and this figure reached 70% by 2019, maintaining that level through 2021. However, there was a slight decrease to 67% in 2022. Average home prices in Harrisburg have shown volatility over the years. From 2010 to 2015, there was a general upward trend, with average home prices rising from $65,829 to $73,716. However, the market experienced a downturn from 2016 to 2019, with prices dropping to a low of $60,483 in 2019. This decline coincided with a period of increasing federal interest rates, which rose from 0.40% in 2016 to 2.16% in 2019.
The relationship between federal interest rates and homeownership rates in Harrisburg follows a typical pattern. As interest rates remained low from 2013 to 2015, hovering around 0.1%, homeownership rates held steady at around 68-69%. When interest rates began to rise more significantly in 2017 (1.00%) and 2018 (1.83%), we see a slight increase in homeownership to 69%, possibly as buyers rushed to secure mortgages before rates climbed further. The stability in homeownership rates despite interest rate fluctuations suggests other local factors may be influencing housing decisions in Harrisburg.
Rental trends in Harrisburg show an interesting pattern. The percentage of renter-occupied housing units fluctuated between 30% and 34% from 2013 to 2022. Notably, the average rent prices have shown a consistent upward trend. In 2013, the average rent was $591, which increased to $647 by 2019, representing a 9.5% increase over six years. The trend accelerated in recent years, with average rent reaching $788 in 2021, a significant 33% increase from 2013. This rise in rent prices occurred despite a declining population, which dropped from 11,819 in 2013 to 10,906 in 2022, suggesting that other factors such as housing supply constraints or quality improvements may be driving rent increases.
In 2023 and 2024, Harrisburg's housing market showed signs of recovery and growth. The average home price jumped to $72,533 in 2023, a substantial 11.5% increase from 2022. This upward trend continued into 2024, with average home prices reaching $75,344. These increases occurred despite high federal interest rates of 5.02% in 2023 and 5.33% in 2024, indicating strong local demand or limited housing supply driving prices up even in a high-interest rate environment.
Looking ahead, based on recent trends, we can predict that average home prices in Harrisburg may continue to rise moderately over the next five years, potentially reaching around $85,000 by 2029. Rent prices are also likely to maintain their upward trajectory, potentially surpassing $900 per month on average within the same timeframe. However, these projections assume relatively stable economic conditions and no significant changes in local housing policies or economic factors.
In summary, Harrisburg's housing market has demonstrated resilience and growth despite population decline. The city maintains a high rate of homeownership, even as both home prices and rent have trended upward. The recent sharp increase in home values, coupled with rising rents, suggests a tightening housing market that could present challenges for affordability in the coming years, particularly for renters and first-time homebuyers in this small Illinois city.
