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Home Values and Ownership in Marion, Illinois: A Resilient Housing Market
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
Marion, Illinois, a vibrant community with a rich history, has experienced notable changes in its real estate market over the past decade. The city's homeownership rates, average home prices, and rent prices have fluctuated, reflecting broader economic trends and local market conditions. Homeownership rates in Marion have shown variability with a slight declining trend. In 2013, the rate was 65%, increasing to 67% by 2022. During this period, average home prices in Marion demonstrated a consistent upward trend. The average home price rose from $110,501 in 2013 to $157,431 in 2022, marking a significant 42.5% increase over nine years.
The relationship between federal interest rates and homeownership rates in Marion shows some correlation. As interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.4%), homeownership rates in Marion remained relatively stable, hovering around 65-68%. However, as interest rates began to rise more significantly from 2017 onwards, there was a slight dip in homeownership rates, reaching a low of 61% in 2019 when the federal interest rate was 2.16%. This suggests that higher interest rates may have made homeownership less affordable for some residents.
Renter percentages in Marion have fluctuated inversely to homeownership rates, as expected. In 2013, the renter-occupied percentage was 35%, reaching its peak of 39% in 2019 before declining to 33% in 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $810, increasing to a high of $861 in 2017 before declining to $815 in 2022. This trend suggests that rent prices in Marion are influenced by various factors, including local economic conditions and housing supply.
Recent data shows that the average home price in Marion continued to rise, reaching $161,495 in 2023 and further increasing to $166,767 in 2024. This represents a 5.9% increase from 2022 to 2024. Concurrently, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and potentially influence future homeownership rates in the city.
Predictive models forecasting 5-year trends anticipate that average home prices in Marion will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $190,000 to $200,000, assuming a moderate annual growth rate of 3-4%. Average rent prices are also expected to increase, potentially reaching $900-$950 by 2029, based on historical trends and accounting for inflation and local market dynamics.
In summary, Marion's real estate market has shown resilience and growth over the past decade. The city has maintained a relatively stable homeownership rate despite fluctuations in interest rates and rising home prices. The recent surge in home values, coupled with increasing interest rates, may present challenges for potential homebuyers in the coming years. However, the steady population growth and the city's economic development efforts suggest a continued demand for housing, which could support both the rental and homeownership markets in Marion.
