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Rising Home Values and Declining Ownership in Rock Island, Illinois: A Mississippi River City's Housing Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Rock Island, Illinois, situated along the Mississippi River, is a vibrant city with a rich industrial heritage. Known for its historic architecture and as part of the Quad Cities metropolitan area, Rock Island has experienced notable shifts in its housing market over the past decade. The city has seen a gradual decrease in homeownership rates, accompanied by fluctuations in average home prices and rent costs.
The homeownership rate in Rock Island has shown a declining trend from 2013 to 2022. In 2013, 69% of housing units were owner-occupied, but this figure dropped to 64% by 2022. Interestingly, this decline in homeownership coincided with a significant increase in average home prices. The average home price rose from $88,331 in 2013 to $115,242 in 2022, representing a 30.5% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Rock Island. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging between 67% and 69%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates showed a more pronounced decline, dropping to 64% in 2019 and remaining at that level through 2022.
As homeownership rates decreased, the percentage of renters in Rock Island increased from 31% in 2013 to 36% in 2022. This shift was accompanied by fluctuations in average rent prices. The average rent rose from $771 in 2013 to a peak of $848 in 2014, before experiencing some volatility. By 2022, the average rent had decreased to $773, nearly returning to its 2013 level. The increase in the renter population, coupled with the relatively stable rent prices, suggests a growing demand for rental properties in the city.
In 2023, Rock Island saw a continued increase in average home prices, reaching $117,035. This upward trend persisted into 2024, with average home prices climbing to $122,561. Concurrently, federal interest rates rose significantly, hitting 5.02% in 2023 and further increasing to 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the city.
Looking ahead, predictive models suggest that average home prices in Rock Island are likely to continue their upward trajectory over the next five years, potentially reaching around $140,000 by 2029. Average rent prices, which have shown more stability, are projected to increase modestly, possibly reaching $850-$900 per month in the same timeframe.
In summary, Rock Island has experienced a shift towards a higher proportion of renters, driven by rising home prices and fluctuating interest rates. The inverse relationship between homeownership rates and average home prices highlights the changing dynamics of the city's housing market. As Rock Island moves forward, the balance between homeownership and renting will likely continue to evolve, influenced by economic factors and housing market conditions.
