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Macomb, Illinois: Resilient Housing Market Amid Fluctuating Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Macomb, Illinois, home to Western Illinois University, has experienced significant changes in its housing market over the past decade. Located in McDonough County, this vibrant city has seen notable shifts in homeownership rates, average home prices, and average rent prices since 2013.
The homeownership rate in Macomb demonstrated an overall upward trend from 2013 to 2018, followed by a slight decline in recent years. Starting at 49% in 2013, the rate increased steadily to 59% by 2017. However, by 2022, it had decreased to 50%. This trend correlates with the fluctuations in average home prices in the city. From 2013 to 2015, average home prices rose from $93,197 to $95,242, coinciding with the increase in homeownership. As average home prices declined to $85,567 in 2018, homeownership rates began to plateau and then decrease.
Federal interest rates have played a crucial role in shaping homeownership trends in Macomb. During the period of exceptionally low interest rates from 2013 to 2015 (ranging from 0.11% to 0.13%), homeownership rates increased substantially. As interest rates began to rise from 2016 onwards, reaching 1.83% in 2018, the growth in homeownership rates slowed and eventually reversed. This aligns with the general economic principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Macomb have inversely mirrored the homeownership trends. In 2013, 51% of residents were renters, which decreased to 41% by 2017 as homeownership increased. By 2022, the renter percentage had risen back to 50%. Interestingly, average rent prices have not consistently followed this trend. Average rent peaked at $884 in 2015 when the renter percentage was decreasing, then dropped significantly to $687 in 2017 when the renter percentage was at its lowest. Since then, average rent has fluctuated, reaching $770 in 2022 as the renter percentage increased.
Recent data shows that average home prices in Macomb continued to rise, reaching $100,302 in 2023 and $104,720 in 2024. This represents a significant increase from the 2022 average of $97,704. Concurrently, federal interest rates have also increased substantially, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the city.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Macomb will continue to rise, potentially reaching around $120,000 by 2029. Average rent prices, which have been more volatile, may stabilize and gradually increase to approximately $900 per month over the same period.
In summary, Macomb has experienced significant fluctuations in its housing market over the past decade. Homeownership rates increased from 2013 to 2017 but have since declined, while average home prices have shown overall growth despite some intermittent dips. Renter percentages have inversely mirrored homeownership trends, but average rent prices have not consistently followed this pattern. The recent sharp increase in both average home prices and federal interest rates will likely play a crucial role in shaping Macomb's housing market in the coming years.
