Loading Content...
Hillsboro, Illinois: Home Values and Ownership in a Small City with Rich History
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hillsboro, Illinois, a city spanning 8.66 square miles, has experienced notable shifts in its housing market over the past decade. This vibrant community, known for its rich history and small-town charm, has seen fluctuations in homeownership rates and housing prices that reflect broader economic trends.
The homeownership rate in Hillsboro has remained relatively stable, with a slight increase from 70% in 2013 to 75% in 2022. This trend correlates with the changes in average home prices, which have shown a general upward trajectory. In 2013, the average home price was $95,246, and by 2022, it had risen to $115,941, representing a 21.7% increase over this period.
The relationship between federal interest rates and homeownership rates in Hillsboro follows a typical pattern. As interest rates remained low, particularly from 2013 to 2016 when they were below 0.5%, homeownership rates increased from 70% to 78%. This trend aligns with the general understanding that lower interest rates make mortgages more affordable, encouraging home purchases.
Renter percentages in Hillsboro have inversely mirrored the homeownership trends, decreasing from 30% in 2013 to 25% in 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $722, peaking at $804 in 2017, before settling at $732 in 2022. This fluctuation in rent prices, despite a decreasing renter population, may be attributed to changes in housing quality or local economic factors.
Looking at the most recent data, the average home price in Hillsboro slightly decreased from $115,941 in 2022 to $115,626 in 2023, and further to $115,240 in 2024. This minor decline occurs against the backdrop of rising federal interest rates, which increased from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. These higher interest rates may be contributing to the slight cooling in home prices.
Applying predictive models to forecast the next five years, we anticipate a potential stabilization or modest growth in average home prices, contingent on interest rate trends and local economic factors. Rent prices are expected to maintain their current levels or see slight increases, influenced by the balance between housing supply and demand in Hillsboro.
In summary, Hillsboro's housing market has demonstrated resilience with a steady increase in homeownership rates and average home prices over the past decade. The recent slight decline in home prices, coupled with rising interest rates, suggests a potential shift in market dynamics. As the city continues to evolve, these housing trends will play a crucial role in shaping its economic landscape and community composition.
