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Highland, Illinois: Rising Home Values and Stable Ownership in a Growing 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
Highland, Illinois, is a vibrant community located in the southwestern part of the state. With a population of 15,615 in 2022 and a land area of 6.81 square miles, the city boasts a comfortable suburban atmosphere. Over the past decade, Highland has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Highland has remained relatively stable over the years, with a slight increase from 74% in 2020 to 77% in 2022. This trend coincides with changes in average home prices, which have shown significant growth. In 2010, the average home price in Highland was $157,812. By 2022, this figure had risen to $222,174, representing a substantial increase of 40.8% over 12 years. This upward trend in home prices may have influenced homeownership rates, as residents sought to capitalize on the appreciating value of real estate in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in Highland. The period from 2010 to 2021 saw historically low interest rates, ranging from 0.08% to 0.18%. These low rates likely contributed to the relatively stable and high homeownership rates observed during this time. As interest rates began to rise in 2022 to 1.68%, there was a slight increase in homeownership from 75% in 2021 to 77% in 2022, possibly due to residents rushing to purchase homes before rates climbed further.
The rental market in Highland has also experienced changes over the years. The percentage of renters decreased slightly from 26% in 2020 to 23% in 2022. Interestingly, average rent prices have shown a downward trend in recent years. In 2013, the average rent was $899, which increased to $918 in 2016. However, by 2022, the average rent had decreased to $773. This decline in rent prices, coupled with the increase in homeownership rates, suggests that more residents may have transitioned from renting to owning homes during this period.
Looking at the most recent data, the average home price in Highland continued its upward trajectory, reaching $231,452 in 2023 and $240,972 in 2024. This represents a 4.1% increase from 2022 to 2023 and a further 4.1% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Highland will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $280,000 to $300,000, assuming a conservative annual growth rate of 3-4%. As for rent prices, the recent downward trend may stabilize or reverse slightly. We project average rent prices to increase moderately, potentially reaching $800 to $850 by 2029.
In summary, Highland has demonstrated resilience in its housing market, with steadily increasing home values and relatively stable homeownership rates. The recent rise in interest rates and the continued appreciation of home prices may present challenges for future homebuyers. However, the city's strong homeownership culture and the potential for rent prices to remain competitive could continue to make Highland an attractive place for both homeowners and renters in the coming years.
