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Milan, Illinois: Rising Home Values and Homeownership Rates in 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
Milan, Illinois, a small community in Rock Island County, has experienced notable demographic shifts and housing market trends over the past decade. The village has seen interesting changes in homeownership rates, average home prices, and average rent prices, all while facing a declining population. Homeownership rates in Milan have shown fluctuations, with a general trend towards increasing ownership in recent years. In 2013, the homeownership rate was 69%, which dropped to a low of 64% in 2018. However, since then, there has been a steady increase, reaching 72% in 2022. This upward trend in homeownership coincides with rising average home prices. The average home price in Milan has seen consistent growth, increasing from $117,313 in 2010 to $163,666 in 2022, representing a 39.5% increase over this period. The relationship between federal interest rates and homeownership rates in Milan shows some correlation. During periods of lower interest rates, such as from 2013 to 2016 when rates were below 0.5%, homeownership rates remained relatively stable around 70%. As interest rates began to rise from 2017 onwards, there was initially a slight decrease in homeownership. However, despite rising interest rates, homeownership rebounded strongly from 2019 to 2022, suggesting other local factors may have played a significant role in driving homeownership.
Renter percentages in Milan have generally mirrored the inverse of homeownership trends. The proportion of renters increased from 31% in 2013 to a peak of 36% in 2018, before declining to 28% in 2022. Average rent prices have shown an overall upward trend, rising from $528 in 2013 to $721 in 2022, a 36.6% increase. Interestingly, the population of Milan peaked at 6,101 in 2015 and has since declined to 5,242 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, the average home prices in Milan continued their upward trajectory, reaching $169,348 in 2023 and $175,067 in 2024. This represents a 7% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the village.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and rent prices over the next five years. Average home prices could potentially reach around $200,000 by 2029, assuming a similar growth rate. Average rent prices might increase to approximately $800-$850 per month in the same timeframe. However, these projections may be influenced by various factors including economic conditions, local development, and demographic changes.
In summary, Milan has experienced a resurgence in homeownership rates in recent years, coupled with steady increases in both average home prices and rent prices. The community has shown resilience in its housing market, with property values appreciating consistently despite population fluctuations. The interplay between interest rates, homeownership, and rental markets will likely continue to shape the village's housing landscape in the coming years.
