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Kankakee Home Values Surge: Stability in Ownership Amid Rising Prices
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Kankakee, Illinois: A Decade of Housing Market Resilience Kankakee, located in Illinois, is a vibrant community with a rich history and diverse population. Over the past decade, the city has experienced notable shifts in homeownership rates, average home prices, and average rent prices. The ownership percentage has remained relatively stable, while average home prices and average rent prices have shown overall upward trends.
The homeownership rate in Kankakee has remained fairly consistent, hovering around 54-55% from 2013 to 2022. During this period, average home prices have shown a significant increase. In 2013, the average home price was $74,901, which steadily rose to $116,016 by 2022, representing a 54.9% increase over nine years. This upward trend in home prices, despite a stable ownership rate, suggests that existing homeowners have benefited from appreciating property values while potential new buyers may face affordability challenges.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.4%), the homeownership rate in Kankakee remained stable at 55%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight decrease in homeownership to 54%, likely due to increased borrowing costs. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not significantly impact homeownership rates, which remained at 54%.
The renter percentage in Kankakee has fluctuated slightly between 44% and 46% from 2013 to 2022. Average rent prices have shown an overall upward trend during this period. In 2013, the average rent was $810, which increased to $958 by 2022, representing an 18.3% rise. The most significant jump occurred between 2020 and 2021, when average rent increased from $978 to $1,025, a 4.8% rise in a single year. This increase coincided with a population decrease from 30,102 in 2020 to 29,280 in 2021, suggesting that factors beyond population growth, such as housing market dynamics and economic conditions, influenced rent prices.
In 2023 and 2024, Kankakee experienced continued growth in average home prices. The average home price reached $122,512 in 2023 and further increased to $129,957 in 2024, representing a 6.1% year-over-year increase. This growth occurred despite rising interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, indicating strong demand and resilience in the local housing market.
Looking ahead, predictive models suggest that average home prices in Kankakee are likely to continue their upward trajectory over the next five years. Based on historical trends and current market conditions, average home prices could potentially reach around $150,000 to $160,000 by 2029. Average rent prices are also expected to increase, albeit at a more moderate pace, potentially reaching $1,100 to $1,200 per month by 2029.
In summary, Kankakee has demonstrated a resilient housing market characterized by stable homeownership rates, steadily increasing average home prices, and gradually rising average rent prices. The significant appreciation in home values, coupled with recent increases in interest rates, may pose challenges for new homebuyers but has benefited existing homeowners. The rental market has shown consistent growth, reflecting the city's evolving demographics and economic landscape. As Kankakee continues to develop, these housing trends will play a crucial role in shaping its future urban dynamics and community composition.
