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Home Values and Ownership Rise in Monmouth, Illinois: A Decade of Housing Market Shifts
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Monmouth, Illinois, a charming city located in Warren County, has experienced notable shifts in its housing market over the past decade. This city, home to Monmouth College, has seen interesting trends in homeownership rates, average home prices, and average rent prices, reflecting broader economic changes and local dynamics.
The homeownership rate in Monmouth has shown a general upward trend, increasing from 67% in 2013 to 73% in 2022. This rise in homeownership coincides with fluctuations in average home prices. In 2013, the average home price was $66,943, which steadily increased to $83,279 by 2022, representing a 24% increase over this period. The most significant jump occurred between 2018 and 2019, when average home prices rose from $73,488 to $78,321, a 6.6% increase in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in Monmouth. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1-0.4%. This favorable lending environment likely contributed to the initial increase in homeownership from 67% to 68% between 2013 and 2016. As interest rates began to rise more significantly from 2017 onwards, reaching 2.16% by 2019, we observe a slight dip in homeownership to 69%. However, the dramatic drop in interest rates to 0.08% in 2021 coincided with a sharp increase in homeownership to 74%, the highest level in the observed period.
Conversely, the percentage of renters in Monmouth has decreased from 33% in 2013 to 27% in 2022. This decline in renters corresponds with fluctuations in average rent prices. In 2013, the average rent was $645, which decreased to $572 by 2021, before rising again to $625 in 2022. The population of Monmouth has also decreased during this period, from 11,015 in 2013 to 10,143 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, average home prices in Monmouth continued to rise, reaching $88,164 in 2023 and $91,985 in 2024. This represents a substantial increase of 10.4% from 2022 to 2024. Interestingly, this price growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Monmouth will continue to rise, potentially reaching around $105,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the recent acceleration in price growth. For average rent prices, we expect a more moderate increase, potentially reaching around $675 by 2029, assuming the current balance between supply and demand in the rental market remains relatively stable.
In summary, Monmouth has experienced a significant increase in homeownership rates over the past decade, coupled with rising average home prices. The city has shown resilience in its housing market, with prices continuing to climb even in the face of higher interest rates. The rental market has seen more fluctuation, with a general trend towards lower renter percentages and relatively stable average rent prices. These trends reflect a dynamic housing market in Monmouth, influenced by both local factors and broader economic conditions.
